Which of the following is true?
a. Purchases of stock are included as part of investment in the national income accounts.
b. Fixed investments include all spending on capital goods, as well as residential construction.
c. Investment spending is the least volatile category of GDP
d. All of the above are true.
b
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A decrease in the price of a fixed factor of production decreases total cost and
A) increases marginal cost. B) leaves marginal cost unchanged. C) decreases marginal cost. D) increases variable cost.
Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter a MBA program full-time (assume Nicky doesn't work in the summer or hold any part-time jobs). His tuition, books, living expenses, and fees total $15,000 a year. Given this information, the annual total cost of Nicky's MBA studies is:
a. $10,000. b. $30,000. c. $40,000. d. $15,000. e. $25,000.
Suppose Frank likes to snack on sugary candy. Frank knows that it's bad for his teeth to eat sugary candy, but he doesn't care. Frank's snacking habits have no impact on anyone other than Frank. In this case, Frank's consumption of sugary candy generates:
A. a positive externality. B. a negative externality. C. neither a positive nor a negative externality. D. both a positive and a negative externality.
The firm’s demand curve is horizontal no matter what its output is because it ______.
a. can influence the market price determined mostly by the low market output
b. must accept the market price determined by the intersection of the market supply and demand curve
c. can influence the market price determined by the intersection of the market supply and demand curve
d. must accept the market price determined mostly by the high market output