What are the factors that can shift the supply of financial capital to a certain investment?
a. if people do not want to alter their existing levels of risk
b. if the riskiness or return on one investment is the same as other investments
c. if the riskiness or return on one investment changes relative to other investments
d. if people do not want to alter their existing levels of consumption
c. if the riskiness or return on one investment changes relative to other investments
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Costa Rica is a leading exporter of bananas. What explains the comparative advantage of this country in banana production?
A) investment by multinational firms such as Chiquita Brands International and the Dole Food Company B) climate and soil conditions in Costa Rica which are well-suited for banana production C) positive externalities D) a large supply of unskilled labor
If the real wage decreases, the opportunity cost of working in the home will
a. increase b. decrease c. not be affected d. increase as long as worker productivity also rises e. increase only if households want to maintain their standard of living
Obi-Wan is considering whether to buy a lightsaber. With probability 0.50 he will value the lightsaber at $4,000, and with probability 0.50 he will value it at $1,000. If new lightsabers sell for $2,500, then buying a new lightsaber is a:
A. fair gamble. B. less-than-fair gamble if Obi-Wan risk neutral. C. less-than-fair gamble. D. better-than-fair gamble.
Define the term "export."
What will be an ideal response?