The long run significance of investment is due to

a) its volatility
b) the importance of capital to economic growth
c) the effect of income on investment
d) the procyclical nature of investment
e) its ability to crowd-out government expenditures


b) the importance of capital to economic growth

Economics

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The above table shows the marginal benefit from submarines for the only two citizens of a country. Suppose submarines cost $175 a piece. Politician A proposes 2 submarines while politician B proposes 4

Assuming that both Bobby and Katie pay one half of the resulting taxes and neither is rationally ignorant, which politician will win the election? A) A because she offers voters a lower tax bill. B) A because she offers voters a greater net benefit. C) B because she offers voters a greater total benefit. D) B because she offers voters more submarines.

Economics

One criticism of the Bertrand pricing model is that

A) the model is implausible when there is product differentiation. B) when there is an oligopoly with no product differentiation, the model's prediction is inconsistent with reality. C) the model's predicted price is solely a function of demand conditions. D) the model's predicted price is dependent on the number of firms.

Economics

Which of the following statements describes a surplus?

a. A surplus is the same as an excess demand. b. A surplus occurs when the price is above equilibrium price. c. A surplus occurs when the price is below equilibrium price. d. A surplus occurs when the quantity demanded exceeds the quantity supplied.

Economics

In an open economy, the government deficit is 600 and saving exceeds investment by 500, so in equilibrium the trade deficit (IM ? X) must be

a. 100. b. 200. c. 300. d. 700.

Economics