What is the difference between gross investment and net investment?
A. Net investment = gross investment minus net factor payments
B. Net investment = gross investment minus taxes
C. Net investment = gross investment minus inventory accumulation
D. Net investment = gross investment minus depreciation
Answer: D
You might also like to view...
The technique that estimates long-run costs and the minimum efficient scale by determining the scale of operation at which most firms in an industry are concentrated is called the:
A) engineering estimation technique. B) statistical cost estimation technique. C) survivor approach. D) back-of-the-envelope approach.
Which of the following factors are most important for determining the economic growth of a country?
A) The country's level of resources B) The independence of the country's central bank C) The country's rates of saving and investment D) The level of sophistication of a country's financial markets
Since World War II, GATT has been responsible for reducing the average tariff among member countries from about
a. 40 percent to about 5 percent. b. 40 percent to about 20 percent. c. 80 percent to about 20 percent. d. 20 percent to about 10 percent.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. Suppose that income for next year is forecasted to be $9,000 instead. What will the firm's profit (loss) be?
A. -$7,934 B. zero C. -$6,000 D. -$8,000 E. none of the above