In Figure 16-1 above, the increase in gross investment lags actual sales because
A) replacement investment is not determined by actual sales.
B) expected sales lag actual sales and net investment is determined by expected sales.
C) actual sales lag expected sales and net investment is determined by expected sales.
D) expected sales lead actual sales and net investment is determined by expected sales.
B
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Consider two individuals, Ozzy and Sharon, who produce toy boats and yoyos. Ozzy's and Sharon's hourly productivity are as follows:
Yoyos /hour Toy boats /hour Ozzy 12 4 Sharon 10 5 Who has the absolute advantage or comparative advantage in the production of yoyos or boats?
In the long run, a perfectly competitive firm leaves the market if the market price is less than the firm's average total cost
Indicate whether the statement is true or false
If a consumer is spending all of his/her income in a manner where MUa / Pa is greater than MUb / Pb, then the consumer:
a. is maximizing his/her utility. b. should increase his/her purchases of B and decrease the purchases of A. c. should spend more money on both goods. d. should spend less money on both goods. e. should increase the purchases of A and decrease the purchases of B.
One of the portfolio choices people must make is whether to deposit idle funds in a bank or purchase government bonds.
a. true b. false