Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Other things equal, the information suggests that the production capacity in economy:
A. B is growing more rapidly than that in either economy A or C.
B. A is growing more rapidly than that in either economy B or C.
C. A is growing less rapidly than that in economy B.
D. C is growing more rapidly than that in economy B.
D. C is growing more rapidly than that in economy B.
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Which of the following are included in the M1 definition of money?
A) currency and checkable deposits B) currency and savings deposits C) traveler's checks and money market mutual funds D) currency and small time deposits E) traveler's checks and savings deposits
An increase in the wage rate causes
A) a rightward shift of the firm's labor demand curve. B) a decrease in the quantity of labor demanded. C) an increase in labor's marginal productivity. D) a leftward shift of the firm's labor demand curve.
U.S. antitrust laws view monopolies as undesirable because
A) monopolies restrain trade and promote inefficiencies. B) monopolies create inferior products. C) monopolies produce only capital goods. D) monopolies produce only cheap, low quality goods.
Producers have little incentive to produce a public good because
a. the social benefit is less than the private benefit. b. the social benefit is less than the social cost. c. there is a free-rider problem. d. there is a Tragedy of the Commons.