The fundamental economic questions that every economic system must answer are:
A) what, how, and for whom.
B) what, why, and for whom.
C) when, why, and for whom.
D) how, when, and how much.
Ans: A) what, how, and for whom.
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Where does profit enter in the circular flow? Why?
What will be an ideal response?
A major problem with MNEs using offshore financial centers is that they may give unfair tax advantages to companies.
a. true b. false
Which of the following examples shows a decreasing-cost industry?
a. As coal mining contracts, the price of drills rise. b. As the DVD industry contracts, the price of DVDs drops. c. As commercial farming expands, the price of suitable land rises. d. As the transistor radio industry expands, the price of transistors drops.
David consumes 140 in the current period and 220 in the future period. David's present value of lifetime consumption is 340. The real interest rate is
A. 20%. B. 10%. C. 5%. D. 0%.