In economic terminology, what is the meaning of investment?
What will be an ideal response?
Investment is the process of using resources to produce new capital. The new capital produced can be physical (new machinery) or human (education) in nature.
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What is the Coase theorem? What conditions need to be present for this theorem to work?
What will be an ideal response?
The rate at which one input can be reduced per additional unit of the other input, while holding output constant, is measured by the
A) marginal rate of substitution. B) marginal rate of technical substitution. C) slope of the isocost curve. D) average product of the input.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. exactly 20 B. more than 20 C. fewer than 20 D. exactly 90
The net income of a firm is the firm's
A. total revenue. B. profits. C. retained earnings. D. capital income.