Business investment is most similar to what form of consumer expenditures and why?
A) consumer nondurables since they are "used up" in producing consumer welfare
B) consumer durables since they accelerate consume welfare
C) consumer durables since they may be treated as a form of household saving
D) Both A and B are correct.
C
You might also like to view...
When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves is vertical?
A) SRAS B) AD C) LRAS D) None of the above
The Royal Proclamation of 1763 and the Quebec Act of 1774 had all of the following effects except:
a. increased the price of farm labor b. increased the price of farm land c. decreased competition for existing farmers d. encouraged Scotch, Irish and German immigrants to rebel against England
In a competitive industry buffeted by demand supply shocks, prices increase and decrease, but economic profits tend to revert to zero. Hence, profits are exhibiting
a. Above-average return b. Positive earnings c. Mean reversion d. None of the above
If P = 3Qs + 3 represents market supply for a competitive industry and market demand is given by Qd = 31 - 1/3 P, the equilibrium quantity is:
A. 10. B. 48. C. 20. D. 15.