Which of the following is the best example of "depreciation"?
A) An individual worker becoming tired at the end of an eight-hour work day.
B) The notion that individuals obtain less utility from paying taxes than giving to charities.
C) A truck used by a pizzeria to make deliveries is worth less at the end of one year.
D) A rise in prices depreciating the value of consumers' real incomes.
C
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When developing classical models, there is an assumption that wages and prices will remain fixed relative to changes in supply and demand
Indicate whether the statement is true or false
If a country has a large deficit in its current account
A) it has a large surplus in its financial account. B) it exports more than it imports. C) it is a net creditor to the rest of the world. D) None of the above are necessarily true.
The economy is in an expansion when it is
A) moving from a peak to a trough. B) moving from a trough to a peak. C) at its peak. D) at its trough.
When positive externalities exist, the private market equilibrium represents a
A) market price which is too low and a market quantity which is too low. B) market price which is too low and a market quantity which is too high. C) market price which is too high and a market quantity which is too low. D) market price which is too high and a market quantity which is too high.