When an asset is sold for less than it is bought, then there is a
A. capital loss.
B. corporate income tax.
C. budget deficit.
D. capital gain.
Answer: A
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Which of the following items are considered physical capital?
I. shares of Ford stock traded on the New York Stock Exchange II. the Taco Bell store nearest you III. the rental cars owned by Hertz Rental-A-Car IV. the salaries paid to Intel executives A) II and III B) I and IV C) I, II and III D) I, II and IV
An increase in the price level results in a(n) ________ in household consumption spending and a(n) ________ in investment spending
A) decrease; increase B) increase; decrease C) increase; increase D) decrease; decrease
PPP is a theory of real exchange rate determination
Indicate whether the statement is true or false
If the consumption of sugar does not change at all following a price increase from 50 cents per pound to 65 cents per pound, the demand for sugar is considered to be
A) relatively inelastic. B) perfectly elastic. C) perfectly inelastic. D) unitary elastic.