The total stock of capital will always increase when
a. depreciation is zero.
b. investment is greater than depreciation.
c. investment is greater than population growth.
d. investment is positive.
e. depreciation is greater than investment.
B
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Which of the following will result in a firm increasing its level of production?
a. An increase in its Marginal Costs. b. A decrease in its Marginal Revenue. c. An increase in its Fixed Costs. d. An increase in the price of its product.
What actions should the Fed take if it believes the economy is about to fall into recession?
What will be an ideal response?
In a competitive market, an efficient allocation of resources is characterized by:
a. a price greater than the marginal cost of production. b. the possibility of further mutually beneficial transactions. c. the largest possible sum of consumer and producer surplus. d. a value of consumer surplus equal to that of producer surplus.
In the United States, dumping is
a. encouraged because it lowers prices for consumers b. prohibited by the Trade Agreement Act of 1979 c. discouraged by domestic consumers who benefit from the lower price d. encouraged because it encourages competition e. encouraged because it promotes expenditure on R&D