Which of the following is not considered to be an important determinant of investment?
A. Technological change.
B. Expectations.
C. Interest rates.
D. Current disposable income.
Answer: D
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Firms will invest in new equipment whenever:
A. public saving is greater than private saving. B. the expected cost of the equipment exceeds the expected benefit. C. the expected cost of the equipment is less than the expected benefit. D. the expected cost of the equipment is greater than the value of the marginal product of the equipment.
According to Keynes, the level of consumer expenditures was a stable function of
a. national income. b. gross income. c. disposable income. d. net income. e. None of the above
Suppose the inverse demand curve for a good is expressed as Q = 50 - 2p. If the good currently sells for $3, then the price elasticity of demand is
A) -3 ? (2/50). B) -2 ? (50/3). C) -2 ? (3/44). D) -3 ? (44/2).
Which of the following is higher in Mali than in the United Kingdom?
a. Modern sanitation access b. Income per person c. Child mortality d. Percent of the population enrolled in college