When a corporation uses profits to pay for the purchase of new capital equipment, this is known as
A. dividend.
B. a coupon payment.
C. reinvestment.
D. collusion.
Answer: C
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Creative destruction:
A) leads to the benefit of all economic agents. B) is more likely in an economy with extractive institutions. C) leads to losses of all economic agents. D) is more likely in an economy with inclusive institutions.
Family breakup cannot be identified as a major cause of poverty
Indicate whether the statement is true or false
If one person's use of a good diminishes another person's enjoyment of it, the good is
a. rival in consumption. b. excludable. c. normal. d. exhaustible.
Here is a consumption function: C = C0 + MPC(Yd). Which of the following is true about the consumption function?
A) Consumption will rise if autonomous consumption or disposable income rise. B) Consumption will fall if autonomous consumption falls or if the MPC rises. C) Consumption will rise if autonomous consumption rises, MPC declines, or disposable income rises. D) For every $1 rise in autonomous consumption, consumption will also rise by $1. E) a and d