Which of the following is NOT true about dead capital?
A. Dead capital can inhibit economic growth.
B. Dead capital will lead to higher investment returns.
C. Companies will be less likely to want to invest when a country has a lot of dead capital.
D. Dead capital can lead to a situation where resources are not efficiently employed.
Answer: B
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Expected value represents
A) the actual payment one expects to receive. B) the average of all payments one would receive if one undertook the risky event many times. C) the payment one receives if he or she makes the correct decision. D) the payment that is most likely to occur.
A lawyer running his own business earns $18,000 in revenue monthly. He pays $8,000 as explicit costs including staff salary and utilities. He owns the office space so no rent is paid
The lawyer could work for other legal firms and earn $10,000 per month. His business profit is ________ and his economic profit is ________. A) $10,000, $10,000 B) $28,000, $10,000 C) $10,000, $0 D) $8,000, $0
If the marginal propensity to consume, MPC, is less than 1 and a household's disposable income increases by $2,000, the household's consumption will _____
a. increase by less than $2,000 b. increase by $2,000 c. decrease if the total income of the household is above $100,000 d. remain the same unless the change in income significantly affects the household's wealth e. increase by more than $2,000
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, ________ should devote more time to calculators because his ________.
A. Smith; opportunity costs are lower B. Jones; opportunity costs are lower C. Smith; absolute advantage is larger D. Jones; absolute advantage is smaller