The change in capital stock in a period is equal to
A. the ratio of the amount of the capital at the beginning of the period to the amount of depreciation.
B. the amount of the capital at the beginning of the period minus net investment.
C. the amount of the capital stock at the beginning of the period plus gross investment minus depreciation.
D. the amount of the capital at the beginning of the period plus gross investment.
Answer: C
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In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of
A) 0 percent and 30 percent. B) 30 percent and 100 percent. C) 0 percent and 100 percent. D) None of the above answers are correct.
When expectations are rational,
a. a foreseen expansionary policy action does not alter output. b. there cannot be any inflation. c. a foreseen expansionary policy action changes output. d. there is zero unemployment.
The primary problem with the argument that "we agree to be coerced if everyone is coerced" to do an action is _____
a. there is no way to know whether it is true or not b. it only applies to a limited number of situations c. it only applies to actions in the public interest d. there is no way to force everyone else to go along
If the game is repeated indefinitely, and the vendors adopt a trigger strategy such that they would start charging the low price only if the other vendor charged a low price last time, what would be the Nash equilibrium?
a. Both the vendors price high b. Both the vendors price low c. Vendor A prices high, vendor B prices low d. Vendor B prices high, vendor A prices low