Table 22-2 Three Longtime Friends-Fred,Barney,and Wilma-Are Deciding How They Will Spend Their

question 179

Multiple Choice

Table 22-2
Three longtime friends-Fred,Barney,and Wilma-are deciding how they will spend their Sunday afternoon.They all agree that they should do one of three things: go to a movie,go to the beach,or go to a museum.They also agree that they will have two pairwise votes to determine how to spend their evening,with the majority determining the outcome on each vote.The first,second,and third choices for each person are as indicated in the table below.

-Refer to Table 22-1.Which of the following statements is correct?

• A) In a pairwise election,"beach" beats "movie."
• B) In a pairwise election,"museum" beats "beach."
• C) In a pairwise election,"movie" beats "museum."
• D) All of the above are correct.

Analyze the relationship between domestic saving, domestic investment, and international capital flows.

Define foreign direct investment and foreign portfolio investment and differentiate between them.

Understand the implications of changes in net capital outflow on a country's financial position.

Interpret the dynamics of international trade and investment on economic indicators.