As the stock of capital grows, there will typically be ________ depreciation.

A. less
B. more
C. the same amount of
D. no


Answer: B

Economics

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An increase in population shifts the production possibilities frontier inwards over time

Indicate whether the statement is true or false

Economics

Assume Congress enacts a $500 billion increase in spending and a $500 billion tax increase to finance the additional government spending. The result of this balanced-budget approach is a:

A. $500 billion decrease in aggregate demand. B. $500 billion increase in aggregate demand. C. $1,000 billion increase in aggregate demand. D. $1,000 billion decrease in aggregate demand.

Economics

You are a hotel manager considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.  ProjectBoom (50%)Recession (50%)A$40-$20B-$10$30C$50-$50D$60$60The expected value of project A is:

A. $20. B. $10. C. $5. D. None of the answers are correct.

Economics

Which of the following statements regarding economic regulation is TRUE?

A. Economic regulation has failed by insisting that firms must be allowed to earn a normal rate of return. B. Economic regulation deals mainly with prices firms charge, but firms can alter their return by altering quality of service, effectively raising the price per constant-quality-unit. C. Rate-of-return regulation has been much more effective than cost-of-service regulation. D. Economic regulation deals only with rates of return, and not with prices.

Economics