The rental rate approach to investment choices by firms and the present value approach
a. always agree.
b. agree only if depreciation is 0.
c. agree only if the price of equipment does not change.
d. agree only when inflation rates are zero.
a
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Double counting occurs when:
A) inputs are included in the calculation of the gross domestic product. B) household production is included in the calculation of the gross domestic product. C) depreciation is included in the calculation of the gross domestic product. D) unsold inventories are included in the calculation of the gross domestic product.
In the short-run, a temporary increase in the money supply
A) shifts the AA curve to the right, increases output and depreciates the currency. B) shifts the AA curve to the left, increases output and depreciates the currency. C) shifts the AA curve to the left, decreases output and depreciates the currency. D) shifts the AA curve to the left, increases output and appreciates the currency. E) shifts the AA curve to the right, increases output and appreciates the currency.
In a society with market failure, there
a. is no pollution b. are no public goods c. is an inefficient allocation of resources d. are no markets e. is no need for a government
The change in total product occurring when a variable input is increased and all other inputs are held constant is
A) average total cost. B) marginal cost. C) average product. D) marginal product.