Investment is defined as the purchase of
A) financial assets and inventories only.
B) new capital goods but not additions to inventories.
C) any financial asset only.
D) new capital goods and additions to inventories.
E) additions to inventories only.
D
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Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.25 per unit, what is the profit-maximizing total quantity for Sweet Grams to produce?
Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
A) 27,000
B) 30,100
C) 57,100
D) 68,000
How can the concepts of opportunity costs, scarcity and choice be illustrated by the production possibilities curve?
What will be an ideal response?
In economics, the difference between a firm's revenues and its costs is referred to as
A) physical capital. B) profit. C) capital gains. D) factor payments.
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers decreased from $15 to $10:
A. Bob's Hardware no longer sells hammers. B. producer surplus for each producer falls by $5. C. total producer surplus falls by $15. D. total producer surplus falls by $5.