An Increase in United States Net Foreign Direct Investment Would

question 256

Multiple Choice

An increase in United States net foreign direct investment would occur if

• A)United States citizens have increased the value of foreign stocks and bonds they own.
• B)United States citizens have increased their building or purchasing of facilities in foreign countries.
• C)net foreign investment increases.
• D)net capital flows decrease.

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Definitions:

Marginal Cost

The alteration in the overall cost of production that occurs with each additional unit produced.

Total Revenue

The amount a firm receives for the sale of its output.

Nash Equilibrium

A concept within game theory where no participant can gain by a unilateral change of strategy if the strategies of the others remain unchanged.

Profit-Maximizing

The process by which a firm determines the price and output level that returns the maximum profit.