A financing gap is:
A. the difference in the amount of investment dollars coming in to a country and the amount of investment dollars going out of a country.
B. the extra investment developing countries need in foreign aid to sustain their current rate of growth.
C. the extra savings a country has beyond that needed to achieve sustainable growth.
D. the difference between the savings rate within an economy and the amount of investment needed to achieve sustainable growth.
Answer: D
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Among the opportunity costs of a firm are all of the following EXCEPT
A) the owner's forgone wage. B) costs of resources bought in markets, such as labor. C) normal profits. D) economic profits.
The GDP deflator: a. includes fewer goods and services than the CPI
b. generally rises substantially faster than the CPI during inflationary conditions. c. ignores investment goods and goods produced by the government. d. is the broadest generally reported measure of inflation.
Alex received a four-year scholarship to State U. that covered tuition and fees, room and board, and books and supplies. If Alex becomes a full-time student, then:
A. Alex has no incentive to study hard while at State U. B. the opportunity cost of attending State U. includes the sum of the benefits Alex would had from attending each of the other schools to which he was admitted. C. the opportunity cost of attending State U. includes the money Alex could have earned working for four years. D. attending State U. for four years is costless for Alex.
As a general rule of thumb, a manager can be 95 percent confident that the true value of the underlying parameter in the regression is not zero, when the absolute value of the t-statistic is:
A. greater than or equal to 1. B. greater than zero. C. greater than or equal to 2. D. None of the statements is correct.