Suppose that inventories were $40 billion in 2007 and $50 billion in 2008. In 2008, accountants would:
a) add $10 billion to other elements of investment in calculating total investment.
b) subtract $10 billion from other elements of investments in calculating total investment.
c) add $45 billion (= $90/2) to other elements of investment in calculating total investment.
d) subtract $45 billion (= $90/2) from other elements of investment in calculating total investment.
a) add $10 billion to other elements of investment in calculating total investment.
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Technological improvement
A) can hide the presence of diminishing returns. B) can be shown as a shift in the total product curve. C) allows more output to be produced with the same combination of inputs. D) All of the above are true.
If a nonbinding price ceiling is imposed on a market, then the a. quantity sold in the market will decrease
b. quantity sold in the market will stay the same. c. price in the market will increase. d. price in the market will decrease.
Marginal revenue product of labor is defined as the additional
a. output a firm would receive after hiring one more unit of resource b. cost of hiring one more unit of resource c. revenue earned by selling one more unit of product d. revenue earned by hiring one more unit of labor e. output received by spending one more dollar on resources
A specific tax in a monopoly market equal to the marginal harm of pollution
A) will increase welfare. B) will decrease welfare. C) will leave welfare unchanged. D) All of the above are possible.