Investment spending includes spending on:

A. consumer durable goods.
B. stocks and bonds.
C. services.
D. new capital goods.


Answer: D

Economics

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Maria lives next door to Alice. Alice regularly plays loud music, which often disturbs Maria. Maria went over to Alice's house yesterday and asked her to turn down her music because loud music adversely affects her. Alice has complied. Which of the following best describes the economists' view of what has happened?

A. The marginal social benefits of loud music were greater than the marginal private costs of loud music and the problem was solved by Maria persuading Alice to internalize her (Maria's) external costs. B. The marginal social costs of loud music were greater than the marginal private costs of loud music and the problem was solved by Maria persuading Alice to internalize her (Maria's) external costs. C. The marginal social costs of loud music were greater than the marginal private costs of loud music and the problem was solved through a reassignment of property rights. D. The marginal social costs of loud music were greater than the marginal social benefits of loud music and the problem was solved by Maria persuading Alice to internalize her (Maria's) external costs. E. none of the above

Economics

If the market in the figure above is a monopoly that maximizes its profit and charges every consumer the same price for each unit of output the consumer buys, the consumer surplus is equal to ________.



A) area A.
B) area B.
C) area C.
D) area D.

Economics

In what way is international trade beneficial to both parties?

a. It reduces shipping costs by passing them on to consumers. b. It increases output and income levels in the whole trading area. c. It lowers consumer expectations of quality and durability. d. It strengthens the cultural identities of each trading partner.

Economics

The percentage of the federal debt owned by trust funds has

A. increased in good times and decreased in bad times. B. remained remarkably constant over the past 20 years. C. decreased consistently over the past 20 years. D. increased consistently over the past 20 years.

Economics