Investment spending includes expenditures on all of the following except

A. Plants or office buildings.
B. Inventory.
C. Equipment.
D. Stocks and bonds.


Answer: D

Economics

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If the world economy expands so that foreign demand for U.S.-made goods increases, in the short run what will happen to aggregate demand, the price level, and real GDP in the U.S.?

What will be an ideal response?

Economics

Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. An economist would calculate the total profit for one photo frame to be

a. $10. b. $15. c. $20. d. $25.

Economics

Which of the following equations is accurate?

a. M × V = P × Q = nominal GDP b. M ÷ V = P × Q = nominal GDP c. M × V = P ÷ Q = nominal GDP d. M + V = P + Q = nominal GDP

Economics

When voting mechanisms substitute for the market mechanism in allocating resources, we are relying on

A. Cost-benefit analysis. B. Public choice theory. C. Opportunity cost analysis. D. Ballot box economics.

Economics