Suppose that inventory investment is $20 billion and (total) investment is $680 billion. What does purchases of newly produced capital goods equal?
A) $715 billion
B) $785 billion
C) $750 billion
D) $35 billion
E) There is not enough information to answer this question.
E
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All economic questions and problems arise from
A) turmoil in the stock market. B) the difference between self-interest and social interest. C) the fact that society has more than it needs. D) a society's wants exceeding what its scarce resources can produce. E) the unequal distribution of income.
Other things being equal, an increase in the price of ethanol will
A. increase the use of corn in ethanol production and in HFCS (another product produced from corn). B. increase the use of corn in all corn uses. C. increase the use of corn in ethanol production but decrease the use of corn in feed. D. increase the use of corn in HFCS.
An increase in the price of a key input in production, like oil, increases aggregate supply.
Answer the following statement true (T) or false (F)
Refer to Table 2-2. According to the law of comparative advantage, both Honduras and Nicaragua could gain if
a. Honduras produced all of the apples and oranges and Nicaragua did not produce anything. b. Honduras specialized in producing apples, Nicaragua specialized in producing oranges, and they traded. c. Honduras specialized in producing oranges, Nicaragua specialized in producing apples, and they traded. d. Nicaragua and Honduras were both were self-sufficient and did not trade.