Suppose that fixed investment is $550 billion and (total) investment is $630 billion. What does inventory investment equal?
A) $80 billion
B) $550 billion
C) $630 billion
D) $1,180 billion
E) There is not enough information to answer this question.
A
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Alice and Gene work in the mailroom, sorting and delivering mail. In order for them to benefit from specialization and trade, Alice must
A) be able to both sort and deliver faster than Gene. B) be equally productive in both sorting and delivering. C) have a comparative advantage in both sorting and delivering. D) have a comparative advantage in one task and Gene must have a comparative advantage in the other task. E) be equally productive as Gene in both sorting and delivering.
John has been trying to find a job for the past six months. He went for an interview at Aqua Inc Although his performance was better than that of all the other candidates, the interview board rejected him thinking that they must be missing out on
something about him that other employers have noticed and hence, have not hired him. A(n) ________ has occurred in this case. A) positive externality B) negative externality C) moral hazard D) information cascade
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S2 (point B)
If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good), the equilibrium could move to which point? A) A B) B C) C D) E
Which of the following would be an example of a fixed cost?
A. property insurance premiums B. wages paid to temporary workers C. expenditures on imported raw materials D. the electric and gas bills