Economic depreciation is the
A) firm's opportunity cost of using its own capital.
B) change in the market value of capital over a given period.
C) return that an entrepreneur can expect to receive on average.
D) forgone return on the funds used to buy capital.
B
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Full employment occurs when the rate of unemployment consists of:
a. structural plus frictional unemployment. b. cyclical plus frictional unemployment. c. structural, frictional, and cyclical unemployment. d. none of these.
If savers do not have fixed savings goals, the supply curve of loanable funds will generally be
a. horizontal. b. downward sloping. c. vertical. d. upward sloping.
Which of the following is a difference between taxing buyers and taxing sellers?
a. Taxing buyers results in a decrease in equilibrium quantity, whereas taxing sellers results in an increase in equilibrium quantity. b. Taxing buyers results in an increase in equilibrium quantity, whereas taxing sellers results in a decrease in equilibrium quantity. c. Taxing buyers results in a decrease in equilibrium price, whereas taxing sellers results in an increase in equilibrium price. d. Taxing buyers results in an increase in equilibrium price, whereas taxing sellers results in a decrease in equilibrium price.
Which of the following statements about the real goods market is not true?
a. Among the most important factors influencing the shape of the aggregate supply curve is the nation's rate of resource utilization. b. Among the key indicators that provide clues about where a nation is on its aggregate supply curve is the unemployment rate. c. If the nation were near the Keynesian range, a strong increase in real GDP would be accompanied by relatively weak rise in the price index. d. In the classical range, a significant increase in real GDP is accompanied by a relatively small increase in the price index. e. All of the above are true.