If investment is less than depreciation, then the capital stock:

A) decreases.
B) remains constant.
C) increases.
D) changes indeterminately.


Answer: A) decreases.

Economics

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The adjustment of nominal incomes to changes in the price level (CPI) is fixed because of the: a. volatility of investment spending

b. existence of long-term contracts. c. complete information possessed by workers. d. all of the above.

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If minimum efficient scale is small relative to the maximum potential market,

a. relatively large firms will have a cost advantage over relatively small firms b. the market price will be low c. relatively small firms will have a cost advantage over relatively large firms d. the market price will be high e. only one firm will survive in the long run.

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A point lying inside (under) a production possibilities curve indicates that

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