Why does capital depreciate?
What will be an ideal response?
Capital can depreciate because it wears out physically or because it becomes obsolete.
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Investment is the expenditure done by
A) savers. B) firms. C) the rest of the world. D) governments. E) Both answers A and B are correct.
The rate at which an employer provides an incentive for an employee to perform (to increase effort) is the:
A. risk-sharing premium. B. efficient bargaining solution. C. incentive coefficient. D. informativeness quotient.
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.
Which of the following is NOT a necessary condition for price discrimination?
A) preventing resale of the product B) downward sloping demand curve C) separating markets for the good D) having a constant marginal cost