Which of the following is an act of economic "investment"?
A. A teacher deposits $500 in a retirement account.
B. An entrepreneur buys 5,000 shares of stock at $5 a share and then sells the stock at a profit for $60 a share.
C. A brewer purchases a new fermentation system for his beer.
D. The state legislature authorizes the sale of a state park.
Answer: C
You might also like to view...
Other things equal, if the central bank raises the target inflation rate, this would result in the
A) AD curve shifting temporarily to the right. B) AD curve shifting permanently to the right. C) AS curve shifting temporarily to the left. D) AS curve shifting permanently to the left.
Goods produced by people in one country that are sold in other countries are called
a. tariffs b. surplus c. exports d. services e. imports
On a bank's T-account, which are part of the bank's assets?
a. both deposits made by its customers and reserves b. deposits made by its customers but not reserves c. reserves but not deposits made by its customers d. neither deposits made by its customers nor reserves
In Figure 9-13, the movement of equilibrium from point D to point C could be caused by
a. a decrease in supply from S2 to S1 in response to economic profits following a decrease in demand from D2 to D1
b. a short-run increase in supply from S1 to S2
c. an increase in supply from S1 to S2 in response to economic profits following an increase in demand from D1 to D2
d. external economies
e. in the short run, by an increase in demand from D1 to D2