In a simple economy without government or foreign trade, any income not consumed is called:
A. investment.
B. net investment.
C. saving.
D. depreciation.
Answer: C
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If beginning stocks for 2014/2015 are adjusted upward in the May (2014) WASDE report, then the estimate of the supply of corn for 2014/15:
a. Is decreased b. Is increased c. Is not affected by the adjustment
Notice the situation that results when the price of coffee is $2 a pound. Which of the following would establish equilibrium?
a. Keep the price the same; increase the quantity supplied to 6,000 pounds.
b. Increase the price to $4; keep the quantity supplied the same.
c. Decrease the price to $1; decrease the quantity supplied to 2,000 pounds.
d. Increase the price to $3; increase the quantity supplied to 5,000 pounds.
Which of the following is the most liquid asset?
A. short-term treasury bonds B. currency C. shares of stock D. small denomination time deposits
Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?
A. It is illegal for banks to make loans to foreign firms. B. The process of making loans is usually more difficult for investors to do than foreign direct and portfolio investment. C. Investors have an aversion to owning dead capital and want to make sure that the resources they own do not become dead capital. D. The interest rate charged on the loans is usually lower than what can be earned in the U.S.