(Consider This) When making a capital stock and reservoir analogy, the:
A. outflow below the dam is the stock of capital.
B. inflow from the river is gross investment.
C. level of water in the reservoir is depreciation.
D. level of water in the reservoir is net investment.
B. inflow from the river is gross investment.
You might also like to view...
If you believe that the economy can achieve full employment without inflation through tax reductions, spending cuts, and deregulation, you are a member in good standing in the
a. classical school b. Keynesian school c. neo-Keynesian school d. rational expectations school e. supply-side school
Refer to the given table.Price Per UnitColumn A Units Per YearColumn B Units Per Year$4011040$459550$508060$556570$605080 Suppose the columns in this table reflect demand and supply. If the current market price is $50, then you would expect:
A. supply to decrease. B. the market price to rise. C. the market price to fall. D. demand to decrease and supply to decrease.
Labor strikes are a significant cause of lost production.
Answer the following statement true (T) or false (F)
What is the difference between the demand curve and the supply curve for capital?
a. The demand curve slopes downward as marginal product falls, whereas the supply curve is vertical because the amount of capital remains the same regardless of price. b. The demand curve slopes downward as marginal product falls, whereas the supply curve slopes upward because owners are willing to supply more at higher prices. c. The demand curve is U-shaped as marginal costs fall and then rise, whereas the supply curve slopes upward because owners are willing to supply more at higher prices. d. The demand curve slopes upward as marginal product falls, whereas the supply curve slopes downward when owners are willing to supply less at lower prices.