The term capital consumption allowance is defined as:
a. the amount of net interest in an economy each year.
b. the estimated value of depreciation and obsolescence in investment goods.
c. the difference between exports and imports.
d. the disposition of disposable personal income.
e. the difference between earnings not received and receipts not earned.
b
You might also like to view...
Show graphically the effect of technological advance on the price of music downloads. In a separate graph, show what happens to the price of CDs as a secondary effect of the new download technology.
What will be an ideal response?
An important difference between the situation faced by a profit-maximizing competitive price-searcher firm in the short run and the situation faced by that same firm in the long run is that in the short run,
a. price may exceed marginal revenue, but in the long run, price will equal marginal revenue. b. price may exceed marginal cost, but in the long run, price will equal marginal cost. c. price may exceed average total cost, but in the long run, price will equal average total cost. d. there are many firms in the market, but in the long run, there are only a few firms in the market.
Economic development encompasses which of the following measures?
a. The political environment b. All of the answers are correct. c. Education d. Economic growth
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, ________ should devote more time to calculators because his ________.
A. Jones; opportunity costs are lower B. Smith; absolute advantage is larger C. Jones; absolute advantage is smaller D. Smith; opportunity costs are lower