Gross private domestic investment
a. excludes all investment in the United States by foreign firms
b. includes all capital in the United States
c. includes net additions to the capital stock plus all new corporate stocks and bonds
d. includes expenditures on new factories, tools, and machinery
e. excludes the expenditures on residential structures and the cost of changes in inventories
D
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Use the following cumulative investment schedule to answer the next question. Expected Rate of ReturnCumulative Amount of Investment (in billions)22%$11020150161801021052952380According to the cumulative investment table above,
A. $40 billion worth of investments have expected rates of return between 20% and 22%. B. $150 billion worth of investments have expected rates of return of 20% or lower. C. $260 billion worth of investments have expected rates of return higher than 20%. D. $150 billion worth of investments have expected rates of return exactly equal to 20%.
Government regulators know that pollution is a problem in Cleveland. However, information on the social cost of this externality is difficult to come by
Which of the following statements best describes how this information problem might manifest itself? a. Well-intentioned regulators monitor a handful of polluting factors and are unable to determine how much they contribute to the problem. b. Well-intentioned regulators decide to shut down the plants and start government production in state-of-the-art factories. c. Well-intentioned regulators impose a collective tax that ends up reducing output beyond the optimal level of output. d. Well-intentioned regulators fail to do anything because they are afraid of doing the wrong thing.
On average, since 1900 U.S. output has grown by roughly ________ percent per year.
A. 9 B. 1 C. 3 D. 6
Use the information provided in Table 7.4 below to answer the question(s) that follow. Table 7.4Inputs Required to Produce a Product Using Alternative TechnologiesTechnologyUnits of CapitalNumber of EmployeesA 836B 1224C 1616D 24 12Refer to Table 7.4. Which technology is the most labor intensive?
A. A B. B C. C D. D