Which of the following statements is FALSE?
A) The production possibilities curve shows the combinations of goods that can be consumed by a nation after trade and specialization begins.
B) The production possibilities curve shows the combinations of goods that can be consumed by a nation before trade begins.
C) The production possibilities curve shows the combinations of goods that can be produced by a nation after trade and specialization begins.
D) The production possibilities curve shows the combinations of goods that can be produced by a nation before trading begins.
A
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The purchase of a firm in another country that involves the taking of management responsibility is referred to as _____
a. portfolio investment b. foreign direct investment c. purchasing power parity d. open account trading
The European Central Bank's Marginal Lending Facility is used to provide:
A. short-term loans at rates above the target refinancing rate. B. long-term loans to banks at rates below the target refinancing rate. C. long-term loans to banks at rates above the target refinancing rate. D. short-term loans to banks at rates below the target refinancing rate.
A point outside a production possibilities curve indicates
A) that resources are not being used efficiently. B) that resources are being used very efficiently. C) opportunity costs are constant. D) an output combination that is unobtainable with the current resource and technology levels.
Often trade will not occur because
a. transaction costs are too high b. neither party has an opportunity cost c. the benefits to one party just equal the losses to the other party d. no one expects to gain from the trade e. the profits of the firm are excessive