To determine the change in the capital stock, the level of new investment must be adjusted for depreciation because some new investment
A) is not used immediately. B) replaces existing workers.
C) is more efficient than existing capital. D) merely replaces existing, but worn out, capital.
D
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If the Federal Reserve raises or lowers interest rates too late, it could result in a ________ policy that destabilizes the economy
A) budgetary B) fiscal C) procyclical D) countercyclical
In the United States in 2012, we produce about 1 barrel of oil for every
A) barrel of oil we export. B) barrel of oil we import. C) two barrels of oil we import. D) ten barrels of oil we import.
Refer to Figure 6.3. On this graph, the total surplus of the market is maximized when the price is at point:
A. A. B. B. C. zero. D. D.
A monopoly firm is the only seller of a good or service that
A) has a perfectly elastic demand. B) has no close complements. C) does not need to be advertised. D) does not have a close substitute.