The total amount spent to buy new physical capital and replace old capital is referred to as
A) net investment.
B) wealth.
C) gross investment.
D) savings.
E) depreciation.
C
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Refer to Figure 13-3. Suppose the economy is at point A. If the economy experiences a supply shock, where will the eventual short-run equilibrium be?
A) A B) B C) C D) D
The North American Industry Classification System (NAICS) categorizes firms by:
A. market structure, ranking them from perfectly competitive to monopoly. B. market share, and groups firms with like market power. C. profits, since profits tend to be higher in more concentrated industries. D. type of economic activity, and groups firms with like production processes.
The base year for the calculation of real GDP for the hypothetical economy in Figure 5.2 is closest to
A. 1960. B. 2000. C. 1990. D. 1980.
The consumption function shifts upward when
A. households buy more imports. B. saving increases. C. real income increases. D. households' real wealth increases.