Investment as defined by economists differs from investment as defined by the general public in that
What will be an ideal response?
economic investment refers to the purchase of machinery and buildings, whereas financial investment refers to the purchase of financial assets.
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State how each of the following affect the aggregate demand curve
a. The price level increases. b. Consumers expect higher inflation in the future. c. The exchange rate rises. d. Foreign income decreases. What will be an ideal response?
If a tax is economical,
a. its cost of collection is small relative to the revenue collected. b. it has an economic impact on households. c. it creates no economic distortions. d. its revenues are used to finance productive investments.
When a price ceiling that has an impact is imposed, it has the effect of
A. decreasing quantity supplied and increasing quantity demanded. B. decreasing both quantity supplied and quantity demanded. C. increasing quantity supplied and decreasing quantity demanded. D. increasing both quantity supplied and quantity demanded.
What is the price elasticity of demand for a vertical demand curve?
a. Inelastic, but not perfectly inelastic b. Perfectly elastic c. Unitary elastic d. Perfectly inelastic e. Elastic, but not perfectly elastic