The capital stock of an economy increases:
a. whenever money in circulation is decreased.
b. whenever gross investment is positive
c. whenever gross investment is negative.
d. only if net investment is positive.
e. only if gross investment is zero.
d
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Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of WorkersPizzas Baked Per Day00110218324430532How many workers will Joe hire if he must pay each one $35 a day?
A. 1 B. 2 C. 3 D. 4
Many economists consider medical care a superior good. Which of the following statements is true regarding a superior good?
a. Consumers want more of a superior good regardless of its price. b. When the price of a superior good increases, consumers demand more of it. c. As consumer income increases a larger percentage of that income is spent on superior goods. d. A superior good has an income elasticity of demand greater than one. e. Both c and d are true of superior goods.
If a widow is harmed by mail fraud,
a. she may be compensated under property law b. her legal action will be in the category of antitrust law c. she may be compensated under tort law d. this is a potential Pareto improvement e. an economic inefficiency has arisen
According to the shortsightedness effect, politicians tend to favor projects with
a. short-run benefits and short-run costs. b. short-run benefits and long-run costs. c. long-run benefits and short-run costs. d. long-run benefits and long-run costs.