Economic profit provides an incentive for persons investing in human and physical capital to
a. undertake investment projects yielding an uncertain return.
b. discover and develop beneficial (productive) investment opportunities.
c. produce products that increase the value of resources.
d. do all of the above.
D
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The World Trade Organization (WTO) promotes foreign trade and investment, or globalization. In recent years opposition to globalization has led to violent protests at meetings of the WTO. One reason for these anti-globalization protests is
A) protesters believe that free trade destroys the distinctive cultures of many countries. B) protesters believe that globalization will result in a return to communism in developing countries. C) protesters object to the loss of intellectual property (such as software programs and movies) that results from foreign trade and investment. D) foreign trade and investment are examples of zero-sum games.
When the actual inflation rate turns out to be greater than the expected inflation rate, who gains—the borrower or the lender—and who loses? Explain why
What will be an ideal response?