Generally speaking, firms _____ of their capital assets
a. prefer straight-line depreciation
b. prefer accelerated depreciation
c. are indifferent between straight-line and accelerated depreciation
d. prefer not to depreciate
b
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What real-world complications keep purchasing power parity from being a complete explanation of exchange rates?
What will be an ideal response?
During times of recession, the labor force participation rate typically:
A. rises, as more people need work. B. rises, as more incomes per household are needed to make ends meet. C. falls, as more people give up and stop looking for work. D. falls, as more people cannot find work, they stay in jobs that aren't a good fit.
In the short run, a price increase in the goods and services market measured by the CPI will:
A. increase the purchasing power of money. B. improve producer profits and, thereby, induce suppliers to expand output. C. increase resource prices, lower profits, and lead to a decline in output. D. reduce the natural rate of unemployment.
Which of the following is an example of a positive statement?
A. People should pollute as little as possible. B. Consumption should be distributed fairly in society. C. Higher prices cause consumers to purchase less. D. There should be no unemployment in an advanced industrial society.