What is the most common measure of a firm's capital stock, and why is it not the most important to focus on?
What will be an ideal response?
The most common measure of a firm's capital stock is the current market value of its plant, equipment, inventories, and intangible assets. However, in thinking about capital, it is important to focus on the actual capital stock instead of its simple monetary value.
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Best National Bank operates with a 20 percent required reserve ratio. One day a depositor withdraws $500 from his or her checking account at this bank. As a result, the bank's excess reserves:
a. fall by $500 b. fall by $400. c. rise by $100 d. rise by $500.
The transmission lag is the time between
A) the implementation of a policy and when the impact of the policy is felt. B) the enactment of a policy (getting a policy passed by Congress with the president's approval) and the implementation of the policy (putting a policy into effect). C) realizing a policy is needed and enacting the policy. D) the occurrence of an event and policymakers realizing the event has occurred.
Which exchange rate is nearest the launch rate for the Euro against the Dollar?
(a) Parity. (b) Euro equals $1.18. (c) Euro equals $1.05. (d) Euro equals $1.24.
Why is land rent a “surplus payment” from the perspective of economists?
What will be an ideal response?