What is the difference between tangible and intangible capital?
What will be an ideal response?
Tangible capital is a material thing used to produce future goods and services. Intangible capital is a nonmaterial thing used to produce future goods and services.
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Bill's Lawn service starts the year with 20 lawn mowers. During the year, 3 mowers break and are not worth fixing. Bill also expands his business and buys 10 more mowers. Bill's capital at the end of the year is ________ mowers
A) 10 B) 30 C) 27 D) 33 E) 20
Suppose the actual federal funds rate is below the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A) monetary policy is expansionary.
B) monetary policy is contractionary.
C) monetary policy is neither expansionary or contractionary.
D) fiscal policy is contractionary.
Refer to the graphs below for a competitive market in the short run. Which of the following statements is true?
A. The firm will increase production
B. The firm is experiencing economic losses
C. The firm is breaking even
D. The firm is making economic profits
Ask your grandparents about their first love and they would probably remember it well. Ask about the second, and it would probably draw a blank. Think in terms of utility analysis and their responses come as no surprise because what they remember or don't remember, even about love, reflects the
a. same idea that is associated with the water and diamond paradox b. law of maximizing utility c. law of diminishing marginal utility d. idea that utility is very durable over time e. fact that total utility must be declining