Actual investment spending does not include
A) spending on consumer durable goods. B) spending on new houses.
C) spending on new capital equipment. D) changes in inventories.
A
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The law of diminishing marginal utility holds that at some point consumption of additional units of a commodity adds less to total utility.
Answer the following statement true (T) or false (F)
When economists model a game with three players instead of two, what is different about the payoff matrix and the payoffs listed in each cell of the matrix?
What will be an ideal response?
An increase in inflation in the United States relative to the rate in France would make:
a. U.S. goods relatively less expensive in the United States and in France. b. French goods relatively less expensive in the United States and U.S. goods relatively more expensive in France. c. French goods relatively more expensive in the United States and in France. d. French goods relatively more expensive in the United States and U.S. goods relatively less expensive in France.
An airline is considering adding a flight from Chicago to Sioux Falls. Total cost of the flight is $5,500 . Variable cost is $2,000 . Revenue from the flight is expected to be $3,000 . Should the flight be added?
a. No, the revenue ($3,000 . is below the cost ($5,500.) b. No, the addition to profit is very small and not worth the effort. c. Yes, profit increases by $1,000 ($3,000 ? $2,000.) d. Yes, profit increases by $3,000.