Refer to the table above. If planned investment is $15 billion, then at the $560 billion level of output, there will be a(n):
The data below are for a private (no government) closed economy. All figures are in billions of dollars.
A. Unplanned increase in inventories of $5 billion
B. Unplanned increase in inventories of $10 billion
C. Unplanned decrease in inventories of $5 billion
D. Unplanned decrease in inventories of $10 billion
D. Unplanned decrease in inventories of $10 billion
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The measure of the cost of a standard basket of goods and services in any period relative to the cost of the same basket of goods and services in the base year is called the:
A. consumer price index. B. consumption cost calculator. C. consumption production index. D. consumer production index.
In a properly functioning economy, money costs approximate opportunity costs.
Answer the following statement true (T) or false (F)
A method that is technologically inefficient
A) might or might not be economically efficient. B) can never be economically efficient. C) results from failure to calculate the ratio of the cost of labor to the cost of capital. D) means that it uses too much labor and too little capital.
Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?
a. spending on education b. the purchase of stocks and bonds c. the purchase of a new house d. the purchase of durable goods such as stoves and washing machines