The total amount spent on new capital in a time period is equal to
A) wealth.
B) gross investment.
C) depreciation.
D) net investment.
B
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The stockholder-manager conflict in a large publicly held firm is manifested in all of the following ways except
A) the managers implement very low-risk strategies that have very low returns. B) the managers implement strategies that maximize the value of the firm. C) managers pursue strategies that maximize firm size rather than the value of the firm. D) the managers attempt to maximize their salaries.
Suppose that no externalities are generated by the production of chickens. If the price of chickens is equal to private marginal cost of producing chickens, then
a. that price is lower than the price associated with an efficient allocation of resources b. that price is higher than the price associated with an efficient allocation of resources c. that price is precisely the price associated with an efficient allocation of resources d. less than an efficient quantity is being produced e. more than an efficient quantity is being produced
Which of the following goods is the most liquid?
A. Home-baked cookies B. Painting by Degas C. Checking account D. Gold watch
The size of underground economies differs across countries. In Greece it has been estimated to be as big as 30 percent of GDP, in Spain 25 percent, in Italy 20 percent, and in the United States, about 7 percent. Given this information, official GDP measures understate true economic activity the most in:
A. United States. B. Spain. C. Italy. D. Greece.