When a nation has no funds to finance economic development, how can it acquire the needed funds? Is the country a net lender or a net borrower?
What will be an ideal response?
Funds for development can be borrowed from other nations. In this case, the borrowing nation is a net borrower in its capital account.
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Why does the NPV of a college education tend to be positive but relatively small?
A) College students tend to be young and poor, so their opportunity cost of capital is high. B) College graduates typically have limited on-the-job skills, so their initial returns from the education investment tend to be small. C) There are few barriers to entry for a college education. D) Most of these studies are based on nominal interest rates, so the NPV is smaller than we would achieve under real interest rates.
The majority of American workers are employed in the service sector of the economy.
Answer the following statement true (T) or false (F)