Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?
a. spending on education
b. the purchase of stocks and bonds
c. the purchase of a new house
d. the purchase of durable goods such as stoves and washing machines
c
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The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The CPI in 2011 is
A) 94.2. B) 140.5. C) 124. D) 100. E) 106.2.
The purchase of a new automobile is included in
A) investment expenditures. B) consumption expenditures on durable goods. C) consumption expenditures on nondurable goods. D) consumption expenditures on services.
The monopolist is able to enjoy profits in the long run because:
A. the firm's price is set above its marginal costs. B. there is no threat of competition. C. the firm can charge a price higher than its average total costs in the long run. D. All of these statements are true.
An information is beneficial to the decision-maker only when:
a. its marginal cost is zero. b. its marginal benefits exceeds its marginal cost. c. the possibility of inaccurate transmission is nullified. d. its marginal benefit is positive.