Fixed investment is
A. when a firm accumulates profits.
B. dissavings.
C. an expenditure by firms on new machines that are expected to produce income in the future.
D. when a firm adds to its inventories of goods.
Answer: C
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Which of the following is an example of money functioning as a medium of exchange?
A) Walmart accepting your $20 when you buy a Blu-ray. B) Apple pricing an iPhone at $299. C) Bank of America paying you 3 percent on your saving account. D) You saving your spare change in a jar before depositing them in your savings account.
A severe hurricane hits Florida, destroying large amounts of the citrus crop. What is the most likely effect of this on the aggregate supply?
A. It will remain unchanged. B. No effect; the economy will move along the curve to a higher price level. C. No effect; the economy will move along the curve to a lower price level. D. It will increase. E. It will decrease.
In an iron and steel plant with 4 blast furnaces, 40 laborers produce 160 tons of pig iron every day. The labor productivity in the firm is equal to _____
a. 0.25 ton per worker b. 4 tons per worker c. 10 tons per worker d. 0.1 ton per worker e. 40 tons per worker
The government regulates the banking industry by
a. conducting frequent audits and examinations. b. limiting the kinds of assets that a bank may own. c. limiting the quantity of some kinds of assets that a bank may own. d. All of the above are correct.