The economic definition of investment includes all of the following except
A. Residential construction.
B. Spending for plants and capital equipment.
C. A retirement portfolio of stocks and bonds.
D. Net changes in business inventory.
Answer: C
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Which of the following provides the best example of a public good?
a. elementary and secondary education b. residential trash pickups provided by a local government c. an unscrambled television signal d. the medical services provided by a local hospital
In contrast to the United States, the European Union has chosen
A. greater wage inequality for lower unemployment. B. less wage inequality and lower unemployment. C. greater wage inequality and higher unemployment. D. similar wage inequality but more unemployment. E. less wage inequality for higher unemployment.
When an input represents a small proportion of a firm's total costs, then
A) demand for the input will tend to be less elastic. B) the input demand will vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) output demand will be highly elastic.
Nona has just gone on a bike ride for an hour and says it gave her a utility of 7. If she chooses to continue to ride her bike for another hour:
A. we can assume Nona's total utility will fall because of diminishing marginal utility. B. we can assume she will get at least a marginal utility of more than 7. C. we can assume she will get a marginal utility of 7. D. we can assume she will get a marginal utility of less than 7.