If each unit of capital lasts an average of 25 years, then for an economy with a capital stock worth 5 times the annual GDP, approximately what percentage of output must be set aside to replace depreciation?
a) 5%
b) 10%
c) 20%
d) 25%
e) 30%
c) 20%
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The extra benefit that results from carrying out one additional unit of an activity is the ________ of the activity.
A. average benefit B. marginal benefit C. economic benefit D. total benefit
Excess capacity occurs in long-run equilibrium under monopolistic competition so that: a. price is less than marginal cost
b. price exceeds minimum average cost. c. marginal revenue exceeds price. d. all of the above occur.
Income inequality tends to be greatest in
A. Richest countries. B. Middle-income countries. C. Poorest countries. D. None of the choices are correct.
Bonnie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $30,000 a year as a florist. If she chooses to be a therapist, the opportunity cost is
A) $40,000. B) $30,000. C) $10,000. D) unable to determine.