Which of the following statements is most accurate about capital accumulation in a market system?
A. Capital good production is the primary driver of the demand for consumer goods.
B. Capital accumulation is generally insufficient because consumers don't directly cast dollar votes for capital goods.
C. The invisible hand directs the production of consumer goods, but government planning is required to effectively allocate resources to capital goods.
D. Entrepreneurs and business owners cast dollar votes for capital goods based on the profitability of goods and services they sell to consumers.
Answer: D
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A. decrease; increase B. increase; increase C. increase; decrease D. decrease; decrease
In the first quarter of 2009, the United States trade deficit fell to its lowest level in a decade. This means that
A) the United States imported more from the rest of the world than it exported to the rest of the world. B) foreign countries exported more to the United States than they imported from the rest of the world. C) foreign countries imported more from the United States than they exported to the United States. D) the United States exported more to foreign countries than it imported from the rest of the world.
Most college courses have a required textbook. Previously, textbooks were only available through the campus bookstore, but now, these texts can be purchased from online retailers, other bookstores, or students can buy an electronic version of the
text. Because of this, we can predict the price elasticity of demand for textbooks from the campus bookstore is ________. A) increasing B) decreasing C) staying the same D) increasing and then decreasing
Which of the following things do banks do with the funds they acquire from savers?
A) invest in corporate stock B) invest in corporate bonds C) make loans to individuals D) all of the above