In the accelerator theory the
A) smaller the desired capital-output ratio the larger will be net investment.
B) smaller the desired capital-output ratio the larger will be replacement investment.
C) larger the desired capital-output ratio the larger will be net investment.
D) larger the desired capital-output ratio the smaller will be replacement investment.
C
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Economists generally assume
A) individuals act strictly in the public interest. B) individuals are never concerned with the interests of other people. C) individuals rarely promote the projects in which they are interested. D) none of the above.
Which of the following is the best example of a natural monopoly?
a. gold mining in the Colorado Rocky Mountains b. filmmaking in Hollywood c. electrical service to homes in Seattle d. production of film by Kodak e. production of computers by IBM
The primary function of the Export-Import Bank is to assist in
a. guaranteeing markets for U.S. importers. b. financing exports from the United States. c. providing foreign currency to U.S. banking institutions. d. reducing tariff rates between trading nations.
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.For Pat to earn normal profit, Pat's accounting profit would have to be ________.
A. $50,000 B. $0 C. $15,000 D. $35,000