The Zonamo company produces waste disposal machines and sells them to militaries all over the world. The company started last year with $10 million of capital on hand and invested $15 million in new capital throughout the year
At the end of the year, the company's capital stock was $17 million. Hence, for the year, depreciation equaled ________ and net investment equaled ________.
A) $25 million; $5 million
B) $5 million; $5 million
C) $8 million; $7 million
D) $7 million; $8 million
E) $8 million; $15 million
C
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The current account balance plus the financial account balance
A) equals the trade balance. B) equals the net outflow of currency from the domestic economy. C) will be negative during economic expansions and positive during economic contractions. D) equals zero.
Indirect incentive
What will be an ideal response?
Suppose an economy has a balanced federal budget, and a large increase in oil prices plunges the economy into a recession. Tax revenues will ________ and expenditures on transfer payments will ________, resulting in a budget ________.
A. fall; increase; deficit B. increase; increase; surplus C. fall; fall; deficit D. increase; fall; surplus
Automobiles create externalities when they create congestion and waste the time of others.
Answer the following statement true (T) or false (F)