In November 2008, automobile executives from Ford, GM and Chrysler testified to Congress that their firms needed a $25 billion bailout to prevent bankruptcies. The executives stated that part of the cash would be used to re-design production lines
The $25 billion is ________ and the re-designed production lines are ________. A) financial capital; physical capital
B) gross investment; physical capital
C) physical capital; financial capital
D) net investment; gross investment
A
You might also like to view...
When a low-income nation improves its institutions, so that growth results, one reason the growth may be more rapid than would result from a similar improvement in a developed nation that brings the same amount of added capital per worker to each nation, is that
a. adding capital has constant returns to scale, rather than diminishing returns, in each nation. b. with diminishing returns to scale, and with richer nations starting with more capital per unit labor, the added capital produces smaller increments to production in the higher-income nations. c. wage rates are lower in the low-income nation, and lower-income workers are more productive. d. capital is always more productive in lower-income nations.
Labor productivity is measured by
A. the ratio of capital to labor. B. real output per worker hour. C. real output per capita. D. the ratio of worker hours to real GDP.
An example of term limits in the United States would be that U.S. presidents cannot hold more than:
A. four 2-year terms. B. four 4-year terms. C. two 2-year terms. D. two 4-year terms.
An efficiency wage is a wage that:
A. most unionized workers negotiate to get rid of. B. is set right at market equilibrium which creates an efficient labor market. C. the government sets deliberately above the market rate to increase equity. D. is deliberately set above the market rate to increase worker productivity.