Thinking as an economist would, which is TRUE of investment?
A. It is the portion of disposable income that is not used for consumption or saving.
B. Investment represents spending on capital goods.
C. Investment is a stock concept.
D. Investment is putting money into stocks and bonds.
Answer: B
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Refer to above Table 2-2. What is the increase in real GDP between years 1 and 2 at fixed year 1 prices?
A) 4.3% B) 3.3% C) 2.5% D) 1.9%
If each player responds by imitating the action of his opponent in the previous round of a repeating game, the players are following a:
A. repeated cooperation agreement. B. collusion plan. C. commitment strategy. D. tit-for-tat strategy.
Allowing free trade can lead to greater output because of the principle of: a. absolute advantage
b. rule of 70. c. comparative advantage. d. scarcity.
If a firm's fixed cost (overhead) increases, what happens to its profit-maximizing price and output?