Explain the distinction between investment and capital.
What will be an ideal response?
Investment is the flow of resources into the production of new capital; it is the process of construction of new plant and equipment during some period of time. Capital is the stock of plant, equipment, and other productive resources created in the investment process. Capital is measured at a moment in time and is increased when net new investment occurs. The key distinction is that capital is a stock, while investment is a flow. Capital is measured as a certain amount as of a particular date, while investment is measured as a certain amount per time period.
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Garrison is the chief financial officer (CFO) of the Colorado Drone manufacturing company and is also on the company's board of directors. Garrison is considered ________ of the company
A) an inside director B) an outside director C) a financier D) a bondholder
The Uruguay Round was unsuccessful in its attempt to strengthen international protection of intellectual property rights
Indicate whether the statement is true or false
The currency crisis of 1992 caused France and a number of other countries to choose between
A) a single currency for the EU and keeping their own currency. B) doing the right thing for their domestic economy and defending the exchange rate. C) lowering interest rates and reducing unemployment. D) competitive devaluations and falling unemployment. E) the Maastricht Treaty and the Single European Act.
Which of the following best illustrates the concept of "derived demand"? a. An increase in the wages of autoworkers leads to an increase in the demand for robots in automobile factories. b. An auto firm decides to supply more minivans when there is a decrease in the demand for station wagons. c. An increase in the price of gasoline leads to an increase in the demand for small cars
d. An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers.