In economics, investment is defined as
A. the spending by households on human capital and durable goods.
B. disposable income plus consumption.
C. the spending by businesses on capital goods and inventories.
D. disposable income minus consumption.
Answer: C
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If an individual demands a good, it means that he or she
A. Is willing and able to purchase the good at some price. B. Must need the good. C. Prefers the good to all other choices. D. Has a strong desire for the good.
One criticism of the corporate income tax is that
A) it is too regressive. B) it is too flat. C) it is so complex to administer that corporate income taxes are rarely collected by the Internal Revenue Service. D) a portion of the corporations' tax burden is passed on to consumers via higher prices for goods and services and to workers via lower wages.
Country X subsidizes industry A. A worldwide recession has hit and Country X has decided to export Good A worldwide, selling the product for less than it costs to produce it. This is
A. the infant industry argument. B. comparative advantage argument. C. a regional trade bloc. D. dumping.
A business buys $5,000 worth of inputs from other firms in order to produce a product. The business makes 100 units of the product and each of them sells for $65. The value added by 25-46 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. the business to these products is:
A. $5,000 B. $6,500 C. $1,500 D. $1,000