A firm’s net investment will be negative if
a) the actual capital stock is less than the optimal capital stock
b) the rate of return on capital exceeds the market interest rate
c) the depreciation rate is less than the gross investment rate
d) gross investment is zero
e) its workforce is growing faster than its capital stock
d) gross investment is zero
You might also like to view...
Net exports of goods and services is equal to the value of
A) exports plus the value of imports. B) imports minus the value of exports. C) domestic consumption minus the value of imports. D) exports minus the value of imports. E) domestic consumption minus the value of exports.
Once voting preferences become more complicated than those assumed by the median-voter theorem:
A. the way in which votes are cast becomes important. B. the policies preferred by the average voter become more important. C. the politicians stay more extreme in their views. D. economists cannot analyze voting preferences successfully.
What does the supply curve for Mexican pesos tell us?
a. The number of pesos people will want to sell at each different exchange rate b. The number of pesos people will want to sell at each level of output c. The number of pesos people will want to buy at each different exchange rate d. The number of pesos people will want to buy in each different time period e. The number of pesos people will want to sell at each different interest rate.
Consider the game tree in Figure 12.8. If Store A and Store B make advertising decision independently:
A. both stores choose to advertise. B. both stores choose not to advertise. C. only Store A chooses to advertise. D. only Store B chooses to advertise.