Explain how gross investment, depreciation, net investment, and the capital stock are related
What will be an ideal response?
The change in the capital stock equals net investment and net investment equals gross investment minus depreciation.
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In the Friedman "Fooling Model" if P(e) is less than P then the labor supply curve in Figure 17-1 above
A) shifts leftward when workers realize their error. B) always shifts rightward. C) initially remains the same. D) Both A and C are correct.
Karen O'Brien has the demand schedule for grapefruit shown in the table below.
A) Her total utility for four grapefruit would be _____.
B) Her marginal utility from the fifth grapefruit would be _____.
C) If the price were 40 cents, her consumer surplus would be _____.
The simple immigration model assumes that the capital stock is constant in each country. If this assumption is relaxed, then the:
A. Rise in business income in the low-wage country will increase the return on capital, which will increase the demand for labor B. Fall in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor C. Rise in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor D. Fall in business income in the low-wage country will increase the return on capital, which will increase the demand for labor
The production possibilities frontier slopes downward and to the right because of limited resources.
Answer the following statement true (T) or false (F)