What can we conclude if depreciation (consumption of fixed capital) exceeds gross domestic investment?
A. Net investment is negative.
B. The economy is importing more than it exports.
C. The economy's production capacity is expanding.
D. Nominal GDP is rising but real GDP is declining.
Answer: A
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Some economists argue that discrimination based on race and sex cannot lead to persistent wage differentials. What is their argument?
What will be an ideal response?
Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's profit at the profit maximizing sales price?
A. $30,000 B. $90,000 C. $120,000 D. -$30,000
Which of the following is an example of a zero-sum game?
a. Jill decides to buy a television set from Jack for $500. b. Angela buys a jacket worth $30 from the apparel store near her apartment. c. Rachel decides to buy Sarah's couch and is willing to pay whatever price Sarah might ask for it. d. Joanna buys a camera at a Thanksgiving sale and gets a tripod free.
How long are the terms of members of the Board of Governors in the Federal Reserve System?
a. 2 years b. 4 years c. 6 years d. 14 years e. The remainder of the governor's life.