For the capital stock of the economy to remain constant over time the amount of investment:
A) must exceed the depreciated value of capital stock.
B) must be less than the depreciated value of capital stock.
C) must be equal to the depreciated value of capital stock times the savings rate of the economy.
D) must be equal to the depreciated value of capital stock.
D
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In the United States, the inflation rate has
A) remained almost constant over the past 25 years. B) risen and fallen since the 1970s. C) fallen as a result of OPEC oil price hikes. D) risen constantly over the past 30 years.
Which of the following products are likely to be complementary goods?
A) Coke and Pepsi B) portable MP3 players and batteries C) HD-DVDs and Blu-Ray DVDs D) Domino's pizza and Papa John's pizza
Explain the automatic correction mechanism that drives a country's current account balance to zero
Without restrictions, the market supply curve is horizontal at P = 5, and the inverse demand curve for taxi cab rides is P = 20 - Q in a competitive market. Subsequently, only 10 taxi cabs are allowed in the market. This results in a deadweight loss of
A) 0. B) 5.5. C) 12.5. D) 25.