Suppose that the capital stock initially is 1000, the depreciation rate is 0.08, and investment is 220. This makes the net growth of the capital stock
A) 300.
B) 237.6.
C) 202.4.
D) 140.
D
You might also like to view...
Keynesian analysis may have contributed to chronic federal budget deficits by
A) advocating transfer payments to redistribute income. B) persuading the public that any given deficit could be a result of responsible policy decisions. C) putting economists in charge of fiscal policy. D) reducing the power of the government to finance expenditures through taxation.
Compare the distribution of income in the United States with the distribution of income in other high-income countries
What will be an ideal response?
The rail system in Metropolis is a natural monopoly. If the government regulates the system by setting the fare equal to marginal cost, which of the following will be true?
a. Price and output will be higher than if the monopoly were unregulated. b. Price and output will be lower than if the monopoly were unregulated. c. Price will be lower and output higher than if the monopoly were unregulated. d. Price will be higher and output lower than if the monopoly were unregulated. e. Profit will be lower than if the monopoly were unregulated, but price and output could either increase or decrease.
In the long run, in a price-taker market, the price of a good is determined primarily by the
a. average total cost of producing it. b. decision of buyers in determining how much they are willing to pay for the good. c. elasticity of supply. d. number of firms in the industry.