If gross investment for a year was $120 billion and net investment was $65 billion, then in that year the country's capital stock ________.
A. increased by $65 billion
B. increased by $55 billion
C. decreased by $55 billion
D. may have either increased or decreased
Answer: A
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A firm that can sell its output for $40 per unit. When it increases its labor force from 4 workers to 5 workers its output increases from 15 to 17 units. The value of marginal product of the 5th worker is
A) $680. B) $340. C) $80. D) $40.
Management is the process of:
a. Controlling others' lives b. Using resources to achieve goals c. Changing one's perspective for the better d. Acting in a habitual or repetitive pattern
In considering economic profit in a market economy, it is correct to say that
A. economic profit tends to reduce the production efficiency of the economy, leading to wasted resources. B. economic profit performs an important function in allocating resources to their most highly valued uses. C. economic profit will only occur, even in the short run, as a result of imperfect competition. D. there should never be any economic profit.
As a firm hires more labor in the short run, the
A) level of total product stays constant. B) output per worker rises. C) extra output of an additional worker may rise at first, but eventually must fall. D) costs of production are increasing at a fixed rate per unit of output.