On January 1, Rick's Photo owned $50,000 of equipment. During the year, the value of the equipment fell by $10,000, plus Rick bought $25,000 in new equipment. Rick's company experienced ________ because ________
A) depreciation of $15,000; depreciation equals investment in new products minus loss in values
B) gross investment of $40,000; gross investment equals net investment plus depreciation
C) net investment of $15,000; net investment equals gross investment minus depreciation
D) gross investment of $15,000; gross investment equals net investment minus depreciation
E) net investment of $15,000; net investment equals beginning year financial capital minus depreciations and investment
C
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The methods that governments use to support farmers vary, but they almost always involve some or all the following methods EXCEPT
A) pay farmers a subsidy. B) introduce a price floor. C) isolate the domestic market from global competition. D) tax farmers. E) use price supports.
If high level of corruption in a country deters foreign investment in worthy projects, this is known as
A) portfolio investment. B) moral hazard. C) foreign direct investment. D) adverse selection.
Which of the following is the best example of transaction cost?
a. The cost incurred on account of an increase in temporary workers b. The extra money you could have earned by working over the weekend had you not chosen to go camping with your friends c. The amount of time you spend in looking for a house d. The increase in production cost resulting from an increase in the hourly wages of workers
Temporary supply shocks:
A. would affect the short-run equilibrium. B. are significant events that directly affect production. C. shift the aggregate-supply curve in the short run. D. All of these are true.