The percentage of total output allocated to the production of new plants, equipment, and structures is the
A. Entrepreneurial rate.
B. Corporate allocation rate.
C. Investment rate.
D. Savings rate.
Answer: C
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The difference between the economy's potential output and its actual output relative to its potential output at a point in time is called the:
A. output gap. B. trade deficit. C. budget deficit. D. full-employment rate.
Pell grants are money given to students attending college. Pell grants are most closely similar to
A) public provision of a good. B) private subsidies given to producers of a good. C) vouchers given to consumers of a good. D) property rights assigned to consumers of a good. E) a subsidy given to the producer of a good.
Does the money demand curve have a positive slope or a negative slope? Why does it have this slope? Explain why an increase in the variable on the vertical axis of the money demand curve causes either an increase or a decrease in the variable on the
horizontal axis of the money demand curve.
In reality, decisions made by firms may not always produce maximum total profit because some executives
a. are more motivated by altruism. b. are more interested in market share than profits. c. may push research and development to the point that profits decline. d. All of the above are correct.