When we use the term fixed investment, we include in investment
A. the purchase of stocks and bonds.
B. the purchase of equipment and other capital goods.
C. the purchase of corporate bonds, but not government bonds.
D. the purchase of intangible goods.
Answer: B
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Mary purchased a stuffed animal toy for $5. After a few weeks, someone offered her $100 for the toy. Mary refused. One can conclude that Mary's consumer surplus from the toy is
A) less than $5. B) at least $95. C) at least $100. D) $105.
Price increases will ________ a household's choice set.
A. not change B. decrease C. increase D. sometimes increase and other times decrease
Since 1925, the longest expansion in the United States lasted:
A. 21 months. B. 43 months. C. 60 months. D. 120 months.
An industry with four firms each having a 25% market share would have a Herfindahl-Hirschman Index (HHI) of
A. 25. B. 100. C. 250. D. 2,500.