Gross investment is
A) the wear and tear on private investment.
B) the total amount of new private investment purchases.
C) what is left over from total new private investment after depreciation.
D) the total amount of private investment purchases, whether new or previously existing.
B
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Suppose that you open your own business and earn an accounting profit of $30,000 per year. When you started your business, you left a job that paid you a $25,000 salary annually
Also, suppose that you invested $70,000 of your own funds to start up your business. If the normal rate of return on capital is 5 percent, your economic profit is A) $5,000. B) -$1,500. C) $1,500. D) -$5,000.
A Lorenz curve shows the:
a. number of people in an economy living below the poverty line. b. percentage of children in an economy who are not receiving adequate nutrition. c. percentage of the economy's population benefiting from government spending programs. d. percentage of an economy's total income each part of the population receives. e. percentage of the population whose income is dependent on sales to foreign countries.
Figure 5-15
Hal initially consumes the combination marked as A in Figure 5-15. After his income increases, Hal consumes combination B. We can conclude that Hal views
a.
X as an inferior good and Y as a noninferior good.
b.
X as a noninferior good and Y as an inferior good.
c.
both X and Y as noninferior goods.
d.
both X and Y as inferior goods.
Which of the following statements is true of price fixing?
a. It represents a high level of competition in an industry. b. It is allowed only under the provisions of the Federal Trade Commission Act. c. It is, by definition, illegal, as there is no justification for it. d. It occurs only in perfectly competitive industries. e. It is legal in United States.