If net exports is a negative number for a particular year, then
a. the value of firms' inventories declined over the course of the year.
b. consumption exceeded the sum of investment and government purchases during the year.
c. the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year.
d. the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.
d
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The Sherman Act of 1890 was passed to prohibit
A) combinations, trusts, or conspiracies to restrict interstate or international trade. B) monopolization or attempts to monopolize interstate or international trade. C) both of the above. D) neither of the above.
In the above figure, suppose the value of the European euro is P1 and U.S. demand for French wine declines. The effect on the euro can be shown by
A. the decrease in the value of the euro to P0. B. an increase in the value of the euro to P2. C. a shift in the demand for euros from D1 to D0, but no change in the value of the euro. D. the excess demand of euro equal to Q3 - Q1.
U.S. antitrust laws are designed to prohibit monopolization and encourage competition. Why, then, does the government erect barriers to entry and create monopoly power by granting firms patents?
What will be an ideal response?
Georg, a German citizen, just purchased 10 shares of stock in Microsoft, a U.S. company. This purchase is an example of
A) foreign public investment. B) foreign direct investment. C) contractual globalization. D) foreign portfolio investment.