If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an economist most likely would say that:
A. the value of the machine will continue to increase 20 percent per year for the next 20 years.
B. during the first year the machine had no cost; it provides an implicit revenue of $10,000 to the firm.
C. the machine's cost for each of its 20 years of existence is $3,000.
D. the machine's cost for each of its 20 years of existence is $2,500.
Answer: B
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Which of the following statements is true?
A) Positive economics deals with issues that are subjective. B) Normative statements depend on personal preferences. C) Positive economics recommends what people ought to do. D) Normative economic statements can be confirmed or disproven.
A time series is
A) the length of a business cycle. B) a macroeconomic aggregate that does not lead or lag the business cycle. C) data that is subject to revision. D) a sequence of dated measurements.
An early frost in the vineyards of Napa Valley would cause a(n)
a. increase in the demand for wine, increasing price. b. increase in the supply of wine, decreasing price. c. decrease in the demand for wine, decreasing price. d. decrease in the supply of wine, increasing price.
The terms business cycle and structural stagnation can be used interchangeably.
Answer the following statement true (T) or false (F)