Economic profit provides both human and physical capital decision makers with an incentive to
a. exploit workers.
b. reject investments yielding an uncertain return.
c. discover and develop beneficial and productive investment opportunities.
d. do both b and c.
C
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A goal of the Securities and Exchange Commission is to reduce problems arising from
A) competition. B) banking panics. C) risk. D) asymmetric information.
The arguments of Friedman and Phelps would suggest that other things the same, a country that pursues a disinflationary policy that the public does not find completely credible
a. should not see an increase in the unemployment rate even in the short run. b. will having rising unemployment for a while, but then return to the natural rate of unemployment. c. will have a permanently higher unemployment rate. d. None of the above is suggested by the arguments of Friedman and Phelps.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The funds used to purchase capital goods are called
A. dividends and interest. B. savings. C. investment. D. financial capital.