Federal Express's purchase of trucks and planes
A) is financial capital.
B) creates wealth.
C) is an example of physical capital.
D) reflects capital gains.
E) includes depreciation.
C
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Estimates of the effect of the user cost on investment vary greatly.
A. True B. False C. Uncertain
In the quantity theory of money, which of these variables is endogenous?
A) the price level B) the velocity of money C) real output D) the money supply E) none of the above
When the government imposes a price ceiling on a good whose price is too high,
a. an excess supply is created b. supply will increase to meet the demand c. the price ceiling becomes the rationing mechanism d. quantity demanded of the good will fall e. a shortage will arise
Suppose production in Spain and Portugal are not subject to the law of increasing cost and that Spain specializes in shoes while Portugal specializes in meat. If the opportunity cost of producing a pair of shoes in Spain is 3 pounds of meat, then we know that
a. Portugal consumes more meat than shoes b. Spain consumes more meat than shoes c. The opportunity cost of producing shoes in Portugal is more than 3 meats d. The opportunity cost of producing shoes in Portugal is less than 3 meats e. The opportunity cost of producing meat in Portugal must be 3 shoes