If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in
a. foreign portfolio investment.
b. foreign financial investment.
c. foreign direct investment.
d. indirect foreign investment.
c
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What can a nation do to increase its economic growth? Why is economic growth among the major national economic goals of all countries?
If real GDP decreased by 1% and nominal GDP increased by 2%, then output:
a. increased and the price level increased. b. increased and the price level decreased. c. decreased and the price level increased. d. decreased and the price level decreased.
Shirley can choose between peanut butter pretzels and caramel coated popcorn for her evening snack. According to economists, her _____ cost of consuming caramel coated popcorn would be the forgone peanut butter pretzels
a. internal b. opportunity c. average d. transaction e. social
Which one of the following is an area of agreement among modern macroeconomists with regard to the use of fiscal policy?
a. Congressional action is necessary if automatic stabilizers are going to be an effective stabilization tool. b. It is difficult to time changes in discretionary fiscal policy in a manner that will promote stability. c. Fiscal policy is more potent than the early Keynesian view implied. d. Budget deficits are a highly effective tool with which to combat a severe recession.