Which of the following is true of a small open economy, but not of a large open economy?
A) Net exports are unlikely to be close to zero.
B) The domestic real interest rate is equal to the world real interest rate.
C) Changes in desired investment result in changes in the trade balance.
D) Changes in desired investment result in changes in actual investment.
E) none of the above
E
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If two large firms from different industries merge,
a. industry concentration rises b. industry concentration falls c. the total assets of the top 200 firms in the country will stay the same d. industry concentration rises in one market and falls in the other e. industry concentration is not affected
A point lying inside (under) a production possibilities curve indicates that
a. the economy is saving money. b. there are no associated opportunity costs. c. more output could be produced with existing resources. d. technology limits production.