The stock of capital in the United States can grow only if
A. GDP minus depreciation is negative.
B. The production possibilities curve shifts inward toward the origin.
C. Depreciation is positive.
D. Gross investment minus depreciation is positive.
Answer: D
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Is the marginal benefit someone enjoys from a good or service the same as the price he or she pays? Explain your answer
What will be an ideal response?
Which of the following is not correct?
a. Market power can cause markets to be inefficient. b. When the decisions of buyers and sellers affect nonparticipants, markets may be inefficient. c. The tools of welfare economics cannot help economists when markets are inefficient. d. Externalities can cause markets to be inefficient.
You are more sensitive to a change in price if you
A) spend a lot of your income on the good. B) spend a small percentage of your income on the good. C) buy very little of the good. D) do not buy the good regularly. E) have a very inelastic demand for the good.
We assume leisure is a normal good. This implies that
A) an increase in taxes decreases the demand for leisure. B) households maximize utility. C) preferences over consumption are well defined. D) an increase in the wage increases demand for leisure.