When investment exceeds depreciation, the capital stock:
A) falls and output falls.
B) falls and output rises.
C) rises and output falls.
D) rises and output rises.
Answer: D) rises and output rises.
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Which is the most likely reason why more young people from low-income regions are more likely to join the military, compared to those in high income regions?
A) They are more easily pressured by recruitment officers. B) Their opportunity costs are relatively lower. C) They are more patriotic than their richer counterparts. D) They are, to put it bluntly, more foolish than their richer counterparts.
When a government changes the official exchange rate target in a fixed exchange regime, there is a danger of
A) realignment pain. B) systemic risk. C) crowding out. D) a beggar-thy-neighbor effect.
The concept of aggregate supply refers to a
a. fixed number of output. b. list of products demanded. c. schedule of output. d. schedule of production costs.
An irrigation system is installed on a farm in Idaho. This is an example of which factor of production?
A. physical capital B. land C. human capital D. labor