In an economy experiencing a declining stock of capital:
A. depreciation is greater than gross private domestic investment.
B. disposable income exceeds personal income.
C. nominal GDP exceeds real GDP.
D. gross private domestic investment is greater than depreciation.
Answer: A
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Suppose a change takes place and the new equilibrium is at point A in the above figure. This change could have been caused by
A) an increase in the per-unit tax on CDs. B) a decrease in the income of consumers. C) a reduction in the wages paid to workers in the CD industry. D) a reduction in the price of CD players.
The portion of consumer surplus that would have existed in a perfectly competitive market but is unobtainable by anyone in society under a monopoly is known as
A) monopoly profits. B) an unattainable surplus. C) a deadweight loss. D) an external cost.
The Robinson-Patman Act of 1936:
A. prohibited selling products at "unreasonably low prices" with the intent of reducing competition. B. made it illegal to monopolize a market. C. repealed the Sherman Act. D. outlawed price discrimination for the purpose of reducing competition.
If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $11,000 to purchase those identical goods in 2015, then the inflation rate from 2014 to 2015 is
A. (110-100)/100*100%=10%. B. (100-100)/100*100%=0%. C. (100-90.9)/100*100%=9.1%. D. unknown given this data.