When a firm builds a new factory, this is an example of an investment in:
A. human capital.
B. the market.
C. physical capital.
D. research and development.
Answer: C
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The major factor contributing to the appreciation of the dollar between 1995 to 2000 was:
A) decrease in capital inflows. B) increase in capital inflows. C) slow GDP growth in the U.S. D) none of the above.
If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the simple Keynesian model, then the marginal propensity to save must be
a. .25. b. 1.5. c. .5. d. 1/3. e. 2/3.
Unlike the person or persons who formally form a sole proprietorship or partnership, a corporation has
(a) a perpetual life. (b) unlimited liability for the debts accumulated by the firm. (c) the right to vote. (d) concentrated ownership.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. One of the reasons why Country A and Country B are not realistic representations of actual countries is:
A. the production possibilities curves are straight lines; realistic ones would be concave.
B. they only represent the production of two goods.
C. they only represent two countries.
D. All of these statements are true.