If for a given year gross investment is $300 billion and depreciation is $75 billion, then, for that year, the capital stock ________ and net investment was ________.
A. Decreased by $225 billion; $300 billion
B. Increased by $250 billion; $225 billion
C. Increased by $225 billion; $225 billion
D. Decreased by $300 billion; $300 billion
Answer: C
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Assume the firms in a perfectly competitive industry are initially in long-run equilibrium and the cost of labor increases. How will the market adjust over time?
A) Firms will enter the market, causing price to rise until losses are eliminated. B) Firms will enter the market, causing price to fall until positive profits are eliminated. C) Firms will exit the market, causing price to rise until losses are eliminated. D) Firms will exit the market, causing price to fall until positive profits are eliminated.
Explain how and why economic events in the U.S. affected the economies of Thailand, South Korea, and Indonesia and vice-versa
Assume that coffee and tea are substitutes. When the price of coffee increases
A) the supply of tea increases.
B) the demand for tea decreases.
C) the demand for tea increases.
D) the supply of tea decreases.
In a market economy,
a. resources are distributed equally across the all possible uses. b. resources move to higher valued uses in response to changes in price. c. resource usage is independent of the price. d. most resources are distributed by the government. e. all of the above.