Which of the following groups are positively affected by foreign direct investment outflows?
A. Taxpayers in the home country
B. The owners of the multinationals
C. The home country's government
D. The home country's labor unions
Answer: B
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The table above gives the utility from pens and pencils. If the consumer has an income of $4, pens cost $1, and pencils cost $.20, which of the following combinations maximizes the consumer's utility?
A) 4 pens and 0 pencils B) 3 pens and 5 pencils C) 3 pens and 6 pencils D) no combination shown
Economies of team production exist when the
A) average cost of producing a unit of a good falls as its output rate increases. B) firm buys parts or products from other firms. C) firm uses specialized resources to produce a range of goods and services. D) individuals in a group specialize in mutually supportive tasks in the production process.
Which of the following monetary policies could reduce the amplitude of oscillations of output around its natural level?
A) raising interest rates before actual output attains its natural level B) lowering interest rates when an economy is still overheated C) lowering interest rates when output is above its natural level D) all of the above.
Analysis indicates that the economy is in a recessionary gap. Which of the following is the most appropriate policy mix in this situation?
a. a budget surplus and expansionary monetary policy b. a budget deficit and expansionary monetary policy c. a budget deficit and contractionary monetary policy d. a budget surplus and contractionary monetary policy