A U.S. firm buys bonds issued by a technology center in India. This purchase is an example of U.S
a. foreign portfolio investment. By itself it is an increase in U.S. holdings of foreign bonds and increases U.S. net capital outflow.
b. foreign portfolio investment. By itself it is an increase in U.S. holdings of foreign bonds and decreases U.S. net capital outflow.
c. foreign direct investment. By itself it is an increase in U.S. holdings of foreign bonds and increases U.S. net capital outflow.
d. foreign direct investment. By itself it is an increase in U.S. holdings of foreign bonds and decreases U.S. net capital outflow.
a
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Diseconomies of scale are associated with: a. a downward sloping long-run average total cost curve. b. an upward sloping long-run average total cost curve. c. a horizontal long-run average total cost curve
d. a vertical long-run average total cost curve.
There are only two people in the world (Adam and Eve) and only one good (apples). Adam has four apples and a total utility in money terms from apple consumption of $16; Eve has four apples and a total utility from apple consumption of $20 . Which of the following statements must be true?
a. Eve's marginal utility from consuming her fourth apple must be greater than Adam's marginal utility from consuming his fourth apple. b. The total utility of society will rise if Adam gives Eve one apple. c. If Adam and Eve each always has a positive marginal utility from consuming apples, the total utility of society can only be increased by an increase in the total number of apples available for consumption. d. Adam's average utility from consuming apples is greater than Eve's average utility from consuming apples.