Which of the following is a difference between a consumption expenditure and an investment expenditure?
a. A consumption expenditure has a short-run motive, while an investment expenditure has a long-run motive.
b. A consumption expenditure is confined to a small amount of money, while an investment expenditure requires large sums of money.
c. An individual that spends his or her money for investment purposes cannot spend for consumption purposes.
d. An individual that spends his or her money for consumption purposes cannot spend for investment purposes.
a
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Assume Ford Motor company purchases a robot that can do the welding work of ten union workers. If the robot is a perfect substitute for labor what can we be sure is true about the annual cost of using and maintaining one robot?
What will be an ideal response?
Everything else held constant, an increase in government spending will cause
A) aggregate demand to increase. B) aggregate demand to decrease. C) the quantity of aggregate demand to increase. D) the quantity of aggregate demand to decrease.
A binding price ceiling that could be set in the market in the graph shown would be:
A. $15.
B. $11.
C. $8.
D. $30.
A manager can determine if her product is viewed as a normal good or an inferior good by considering
A) price elasticity. B) cross elasticity. C) income elasticity. D) advertising elasticity.