Which of the following is correct? Gross private domestic investment:
a. Includes government spending when it is for construction that will aid businesses.
b. Includes investment spending to replace depreciated machinery.
c. Includes stock and bonds.
d. Excludes spending for new residential housing.
e. All of the above are correct.
.B
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The relationship between the level of saving and the level of consumption is called the savings function
Indicate whether the statement is true or false
The marginal factor cost facing each employer in a competitive labor market is greater than the market wage rate.
Answer the following statement true (T) or false (F)
Which of the following statements is false?
A. In a competitive market, the price mechanism encourages conservation of a depletable resource. B. As the price of a depletable resource rises, its known reserves often increase. C. Prices of depletable resources have risen in the twentieth century primarily because resource producers have exercised monopoly or oligopoly power. D. Shortages of depletable resources occur primarily when governments or others interfere with the price mechanism.
Ilona’s country has five factories. In contrast, Hassan’s country has 100 factories. How will productivity in each country be impacted if each country builds two new factories?
a. Both Ilona’s and Hassan’s countries will experience a major increase in productivity. b. Hassan’s country will experience a relatively large increase in productivity, while Ilona’s country will experience a relatively small increase in productivity. c. Ilona’s country will experience a relatively large increase in productivity, while Hassan’s country will experience a relatively small increase in productivity. d. Neither Ilona’s nor Hassan’s country will experience an increase in productivity.