Expenditures on human capital
a. reflect an expectation of some future return on the investment.
b. are generally embodied in a specific individual.
c. reflect an investment of resources today to raise productivity in the future.
d. All of the above are correct.
d
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Your new neighbor does not mow his lawn or prune the trees in his front yard. As a result, your house value decreases. Your neighbor generated
A) a negative externality. B) a positive externality. C) no externality. D) a non-rival good.
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHzTotal BenefitMarginal BenefitTotal CostMarginal Costs2.0$1,000 $900 2.5$1,400 $1003.0 $300$1,200 3.5$1,900 $1,500 4.0$2,000 $400 Application of the Cost-Benefit Principle would lead one to purchase a ________ computer.
A. 4.0GHz B. 3.0GHz C. 2.5GHz D. 2.0GHz
Explain the difference between real and nominal income. How can you get an approximation of the percentage change in real income from one time period to another?
What will be an ideal response?
The major dilemma facing Boeing and Airbus is the
A) fact that neither will respond to the behavior of the other. B) certainty surrounding the reaction of each firm to the behavior of the other firm. C) fact that if each firm separately tries to maximize its profit, it might wind up with less profit that otherwise. D) competition from other firms that drives their economic profit to zero. E) fact that when they collude to maximize their profit, the other firm's profit might be larger than its profit.