In an economy that has stationary production capacity:
A. GDP is zero
B. Capital consumption (or depreciation) is zero
C. Net investment is zero
D. Gross investment is zero
C. Net investment is zero
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Due to federal funding rules, average per pupil expenditures varied across states by no more than $3,000
Indicate whether the statement is true or false
Some critics of capitalism argue that
a. There is too much government intervention in the economy b. Involuntary trade generates no wealth c. If one person makes money, someone else must be losing it d. Voluntary trade ensures gains for both consumers and producers
One result of asymmetric information in the market for used cars is that buyers benefit at the expense of sellers
a. True b. False
Which of the following is a public good created by the market?
a. Broadcast radio b. Tornado sirens c. Street lights d. Cable television