Sam, a U.S. citizen, buys bonds issued by a Greek company that bottles olives. Sam's purchase is
a. foreign direct investment. By itself it increases U.S. net capital outflow.
b. foreign direct investment. By itself it decreases U.S. net capital outflow.
c. foreign portfolio investment. By itself it increases U.S. net capital outflow.
d. foreign portfolio investment. By itself it decreases U.S. net capital outflow.
c
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Suppose IBM purchases a factory in Japan. This purchase is entered into which of the balance of payments accounts?
A) capital and financial account B) official settlements account C) trade account D) purchases account E) current account
The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. The efficient level of output is
A) 2,000 tons. B) 3,000 tons. C) 4,000 tons. D) 5,000 tons.
In the above figure, if the price is $4 per unit, how many units will a profit maximizing perfectly competitive firm produce?
A) 0 B) 5 C) 20 D) 30
An increase in market supply will increase price
Indicate whether the statement is true or false