Which of the following is an example of investment spending?
a. The Miller Company buys a used van to make deliveries.
b. The Rodriguez family buys stock in the Bonanza Corporation.
c. Claude invests his holiday bonus in rare comic books.
d. The Gregor Bakery Company spends its profits on new ovens.
d. The Gregor Bakery Company spends its profits on new ovens.
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Refer to the accompanying figure. The opportunity cost of producing one bushel of corn is:
A. ½ of a bushel of wheat. B. 500 bushels of wheat. C. 250 bushels of wheat. D. 2 bushels of wheat.
YearCPI200594200699200710020081042009117Using the information in the table shown, what can be said about the rate of inflation?
A. Deflation occurred until 2009, then inflation occurred. B. Inflation was the largest from 2005 to 2006. C. Deflation occurred before 2007, then inflation occurred. D. Inflation occurred every year from 2005 to 2009.
Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $25 and the per-unit wage, w, is $15, then the fixed cost of using 81 units of capital and 9 units of labor is:
A. $2,160. B. $135. C. $2,025. D. There is insufficient information to determine the fixed costs.
One inconvenience of commodity money is the need for
A. money to be divisible. B. uniform quality. C. portability. D. All of these responses are correct.