The process of making investments toward fixed assets, both tangible and intangible, is known as
a. capital budgeting
b. capital spending
c. capital
d. net spending
e. none of these
a. capital budgeting
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In the multiple-polluter case for a pollution permit system, suppose Firm 1 and Firm 2 face marginal abatement cost functions of MAC1 = 4.5A1 and MAC2 = 2.25A2, respectively. If the government issues each firm tradeable pollution permits such that each has to abate 10 units of pollution, then, based on this allocation,
a. the two firms have no incentive to trade b. firm 1 has an incentive to buy a permit if the price is greater than $45 c. firm 2 has an incentive to buy a permit if the price is above $22.50 d. firm 2 will be willing to sell a permit if the price is above $22.50
When a U.S. Senator tells a campaign crowd that "High inflation rates are a much more serious economic problem than high unemployment rates," it is an example of
A. an empirically proven fact. B. a normative statement. C. a microeconomic argument. D. a positive statement.
The laws of supply and demand did not apply to elephant tusks
a. True b. False Indicate whether the statement is true or false
Identify three autonomous factors that influence consumption spending. For each, provide an example of how it affects spending.
What will be an ideal response?