Suppose current sales increase by $100 million. Investment theory suggests that current investment must
A) decrease exactly by $100 million.
B) increase by exactly $100 million.
C) increase by less than $100 million.
D) decrease, but by less than $100 million.
E) none of the above
E
You might also like to view...
What is rent seeking with respect to restricting international trade?
A) The rent on factory buildings increases if trade is restricted. B) The government avoids paying rent on buildings when importers pay the tariff. C) An attempt to capture the gains from trade by imposing a tariff D) The government's efforts to capture tariff rents E) The attempt by importers to avoid paying a tariff
Cartels:
a. encourage competition. b. attempt to restrict output in order to raise prices. c. rely on legally enforceable contracts between cartel participants. d. rely on advertising and packaging to increase profits. e. All of the above.
When foreigners export goods to the United States
a. they reduce the ability of the U.S. to export products abroad. b. they acquire the dollars that are necessary to purchase goods, services, and assets from Americans. c. they reduce the living standards of Americans. d. they cause the dollar to depreciate.
In economics, welfare analysis is useful to
A) gauge the validity of "mend it, don't end it." B) determine who should receive income transfers. C) determine who gains and who loses in a particular policy option. D) prove which policy option is "best."