Capital stock is defined as the retail value that was paid for a firm's productive assets.
Answer the following statement true (T) or false (F)
False
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If both the production of goods and services increase and prices rise, then the change in nominal GDP
A) definitely understates the change in production. B) definitely accurately reflect the change in production. C) definitely overstates the change in production. D) either understates or might accurately reflect the change in production. E) More information is needed to determine how the change in nominal GDP compares to the change in production.
According to the capture hypothesis, it appears that regulators eventually end up
A) adopting policies that benefit the firms being regulated. B) adopting policies that benefit consumers at the expense of the regulated firms. C) adopting policies that benefit no one. D) satisfying neither producers nor consumers, but striving to control as much as possible.
DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100, of which $800 are fixed costs already incurred. Expected revenues from the flight are $600. DASH should:
A. not add this flight because only flights that cover their full costs are profitable. B. not add this flight because it is not profitable at the margin. C. add this flight because marginal revenue exceeds marginal costs and total revenue exceeds total variable cost. D. not add this flight because total costs exceed total revenue.
Which of the following is NOT typically true of an innovation cluster?
A. Innovations decline as the cluster gets larger because the available talent is used up. B. The cluster has a pool of skilled labor that can move from one company to another. C. A major university is usually present. D. Financial sources, like venture capital firms, tend to locate in the same area.