Which of the following do national income accountants consider to be investment?
A. The purchase of an automobile for private, nonbusiness use.
B. The purchase of a new house.
C. The purchase of corporate bonds.
D. The purchase of gold coins.
B. The purchase of a new house.
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Refer to the scenario above. The nominal GDP of the country for Year 2 was ________
A) $180,000 B) $174,000 C) $1,920,000 D) $2,510,000
If the marginal rate of substitution is not diminishing, it must mean that tastes violate convexity (assuming that our other assumptions about tastes hold).
Answer the following statement true (T) or false (F)
Holding all else constant, an increase in preferences by Mexicans for U.S. goods will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. increase; increase C. decrease; decrease D. decrease; increase
When diminishing marginal returns starts occurring, the addition of successive units of a variable resource to a fixed resource will cause the firm's production to diminish.
a. true b. false