Which of the following is included as investment in GDP?
i. cars produced during the year but unsold at the end of the year
ii. new capital equipment produced and purchased during the year
iii. purchases of a company's stocks and bonds
A) i only
B) ii only
C) iii only
D) i and ii
E) i, ii, and iii
D
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Suppose that at a firm's profit-maximizing level of output, its total revenue is $1,250, the total cost of its variable factors of production is $1,000, and its total fixed cost is $500. This firm will ________ in the short run, and will ________ in the long run.
A. earn a profit; earn a loss B. shut down; reopen for business C. not shut down; exit the industry D. earn a loss; earn a profit
If, in response to an increase in the price of chocolate the quantity of chocolate demanded decreases, economists would describe this as
A) a change in consumer income. B) a decrease in quantity demanded. C) a decrease in demand. D) a decrease in consumers' taste for chocolate.
North's (1955) theory of economic location is that of "balanced growth"—many industries in each region must advance at about the same time in order for economic growth to occur
Indicate whether the statement is true or false
If interest rates in Canada fall below those in the rest of the world, then
a. it depreciates Canada's exchange rate and this may result in a surplus on Canada's current account b. the demand for Canadian dollars increases c. exports from Canada to other countries decrease d. imports into Canada from other countries increase e. the balance of payments becomes negative