Which of the followings statements is true?
A) The amount of capital accumulation will be higher if the capital stock of last year was low.
B) The amount of depreciation will be lower if the investment on capital last year was high.
C) The amount of capital accumulation will be higher if the capital stock of last year was high.
D) The amount of depreciation will be higher if the investment amount on capital last year was low.
C
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The ability to set a price greater than marginal cost guarantees an economic profit for the monopolistic competitor (assuming P > AC)
Indicate whether the statement is true or false
Potential problems with incentive based compensation are
a. not evaluating the relevant performance measures b. rewarding outcomes that are not include in the performance evaluation c. not funding rewards for meeting performance measures d. all of the above
The tendency for inflation to change relatively slowly from year to year in industrial countries is called:
A. potential inflation. B. inflation inertia. C. inflation expectations. D. the inflation gap.
The aggregate supply curve:
A. is explained by the interest rate, real-balances, and foreign purchases effects. B. gets steeper as the economy moves from the top of the curve to the bottom of the curve. C. shows the various amounts of real output that businesses will produce at each price level. D. is downsloping because real purchasing power increases as the price level falls.