Some nations that seek to produce all of their own needs face the problem that
a. they can deplete their natural resources faster as a result
b. some industries are too small to be efficient if restricted to their domestic markets alone.
c. the opportunity cost of producing some of their own goods is higher than that of trading with others for them.
d. all of the above are true.
d
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Which of the following equations captures the aggregate capital stock of the economy in this year, Know?
A) Know = (1 - depreciation rate) × Klastyear + I B) Know = (1 + depreciation rate) × Klastyear + I C) Know = (1 - depreciation rate) × Klastyear × I D) Know = (1 - depreciation rate) × Klastyear - I The depreciation rate of capital in an economy is 10%. The investment on capital in the current year is $500.
When the owners of a company hire full-time executives to make the day-to-day decisions, this __________ the __________ problem
A) alleviates; stockholder-lender B) alleviates; manager-stockholder C) exacerbates; stockholder-lender D) exacerbates; manager-stockholder
As someone's income rises, eventually their
A. income effect will outweigh their substitution effect. B. substitution effect will outweigh their income effect. C. their substitution and income effects will attain permanent equality.
Teddy transfers $175 from his money market fund to his checking account. This transaction will
A. decrease M1 and increase M2. B. increase M1, but leave M2 unchanged. C. decrease both M1 and M2. D. decrease M2 and increase M1.