Which of the following is not a form of capital?
a. loanable funds
b. John Deere farm machinery
c. sourdough used to make bread
d. sourdough bread on your Thanksgiving dinner table
e. sourdough bread used to make a tuna sandwich at Timpone's restaurant
D
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Two items which have a negative cross price elasticity of demand are referred to as
A) luxury goods.
B) inferior goods.
C) substitutes.
D) complements.
Trinh quits his $80,000-a-year job to become a full-time volunteer at a museum. What is the opportunity cost of his decision?
A) the value he attributes to the joy of working at a museum B) depends on the "going rate" of museum employees C) at least $80,000 D) 0 since he will no longer be earning a salary
The burden of a tax is placed entirely on the buyers of a good when the demand for the good is _____
a. perfectly inelastic b. perfectly elastic c. unit elastic d. relatively elastic
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The GDP Price Index rises, and nominal value of the domestic currency falls. c. The GDP Price Index rises, and nominal value of the domestic currency rises. d. The GDP Price Index falls, and nominal value of the domestic currency rises. e. The GDP Price Index rises, and nominal value of the domestic currency remains the same.