The most volatile type of investment is inventory investment.
Answer the following statement true (T) or false (F)
True
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The deadweight loss associated with a policy change is measured as
a. the maximum value of consumer surplus b. the sum of consumer surplus and producer surplus associated with the new policy c. the excess of producer surplus over consumer surplus d. the sum of ? consumer surplus plus ? producer surplus associated with the new policy
Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy
Why can this difference exist? Be sure to use the terms positive and normative in your answer.
A the beginning of 2012, you pay $100 for a share of stock that then pays you a dividend of $1 at the beginning of 2013. If the stock price rises from $100 to $109 per share over the year, then you have earned an annual rate of return of
A) 5 percent. B) 1 percent. C) 9 percent. D) 4 percent. E) 10 percent.
When two goods are complements, their cross-price elasticity of demand is:
A. positive. B. negative. C. zero. D. equal to one.