Explain what is meant by investment by MNCs encouraging inappropriate consumption
What will be an ideal response?
Discussed in the chapter.
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Which of the following is a final good?
A) the memory chips in your new smart phone B) a share of IBM stock C) flour purchased at the store to bake cookies D) flour used by the bakery to bake cookies
In the production function Y = AF(K, N), total factor productivity is
A) Y/A. B) A. C) K/N. D) Y/N.
Answer the following statement true (T) or false (F)
1) The limited money income of consumers results in a so-called budget constraint. 2) A rational consumer will cease purchasing a product at that quantity where marginal utility begins to diminish. 3) When a consumer is maximizing total utility, he or she cannot increase total utility by reallocating expenditures among different products. 4) When the price of a product falls, the income effect induces the consumer to purchase more of it while the substitution effect prompts her to buy less.
In which of the following situations is expansionary monetary policy most effective?
A. The Fed raises the reserve requirement. B. The Fed sells more securities. C. The Fed raises the discount rate. D. Banks are willing to lend excess reserves.