The desired stock of capital is that stock which
A) firms always obtain.
B) corresponds to the natural level of output.
C) would obtain when net investment is zero.
D) firms are always adjusting toward.
D
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Of all of the people who became permanent legal residents of the U.S. in 2011, about how many were sponsored by employers?
A. 5% B. 13% C. 25% D. 33%
Monopolistic competition occurs in a market with free entry:
A. when there are only a few firms, each producing a unique product, prices above marginal cost and earns zero profit net of fixed costs. B. when there is a large number of firms, each producing an identical product, prices above marginal cost and earns zero profit net of its fixed costs. C. when there is a large number of firms, each of which produces a unique product, prices above marginal cost and earns zero profit net of its fixed costs. D. when there is a large number of firms, each of which produces a unique product, prices above marginal cost and earns a positive profit net of its fixed costs.
Which of the following is a primary implication of the accelerator theory of investment?
A) Net investment occurs when the desired and actual capital stocks are equal. B) In order for gross investment to remain constant, income must remain constant. C) Rising rather than high levels of output are necessary to maintain a high level of net investment. D) B and C are both correct.
Two South Pacific islands, Aba and Ema, have very different Gini coefficients. Aba's is 0.90 and Ema's is 0.40 . That's enough information to tell you that
a. both islands have a relatively equal income distribution because their Gini coefficients are both less than 1 b. Aba's income is growing faster than Ema's c. Ema's distribution of income is less equal than Aba's d. Ema's distribution of income is more equal than Aba's e. Aba's population is growing faster than Ema's