Suppose there are two countries that are identical in every way with the following exception: Country A has a lower depreciation rate (?) than country B. Given this information, we know with certainty that
A) the growth rate will be the same in the two countries.
B) the growth rate will be higher in A than in B.
C) K/N will be higher in B.
D) Y/N will be higher in B.
A
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Which of the following statements about positive economic analysis is false?
A) There is much more disagreement among economists over normative economic analysis than over positive economic analysis. B) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. C) Unlike normative economic analysis, positive economic analysis can be tested. D) There is much more disagreement among economists over positive economic analysis than over normative economic analysis.
When national output rises, the economy is said to be in
A) an expansion. B) a deflation. C) an inflation. D) a recession.
Scarcity is defined as the condition in which
A) both wants and resources are limited. B) wants are finite and resources infinite. C) both wants and resources are infinite. D) wants are infinite and resources finite.
The practice of spreading one's wealth over a variety of different financial investments in order to reduce overall risk is called:
A. diversification. B. risk reservation. C. following the risk premium. D. allocation.