An investment decision involves choosing
A. The amount of plants and equipment and is a short-run decision.
B. A rate of output and is a short-run decision.
C. The amount of plants and equipment and is a long-run decision.
D. A rate of output and is a long-run decision.
Answer: C
You might also like to view...
Which of the following criticisms is NOT directed to the IMF?
A) It lacks openness in its decision-making process. B) It serves the interests of wealthier countries. C) It creates a free-riding problem. D) It violates national sovereignty. E) It is heavily bureaucratic and at times gives harmful advice.
If a consumer purchases only two goods (x and y) and the demand for x is elastic, then a rise in the price of x:
a. will cause total spending on good y to rise. b. will cause total spending on good y to fall. c. will cause total spending on good y to remain unchanged. d. will have an indeterminate effect on total spending on good y.
A market supply curve shows
a. the total quantity supplied at all possible prices. b. the average quantity supplied by producers at all possible prices. c. how quantity supplied changes when consumer income changes. d. suppliers' responses, in terms of the amounts they will supply, to the demands of buyers.
A monopolist might keep the prices below the profit maximizing level:
a. to attract new firms to the market. b. to increase producer surplus. c. due to government intervention and scrutiny. d. due to economies of scale.