Capital is a(n) ____ variable and investment is a ____ variable.

A. physical; financial
B. stock; flow
C. asset; liability
D. flow; stock


Answer: B

Economics

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The relationship between consumer spending and income is known as the

A) rate of individual wealth. B) consumption function. C) rate of income. D) inflation rate.

Economics

Figure 4.3 illustrates the demand for tacos. Assume tacos are a normal good. An increase in income would bring about a movement from

A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.

Economics

A shoe salesman working on commission must decide whether to work hard or shirk. Working hard would increase the probability of a sale from 20% to 70% but would cost him $5 . If the average price of shoes is $100, what is the minimum commission rate would induce him to work hard?

a. 4% b. 6% c. 8% d. 10%

Economics

For something to serve as money, it must be

A. backed by the authority of the government. B. generally accepted by buyers and sellers. C. convertible to gold. D. light, durable, and common.

Economics