What can be concluded when gross private domestic investment exceeds depreciation?
A. Net investment is negative.
B. The economy is importing more than it exports.
C. The economy is exporting more than it imports.
D. Net investment is positive.
Answer: D
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A manager may over-research the appropriateness of a decision
a. Because the costs of a false positive are usually larger b. Because the costs of a false negative are usually larger c. Because it is important to be 100% certain before making a decision d. Because managers can face inordinate censure from agreeing to a bad decision
If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then
A. Increasing opportunity costs will occur with greater tank production. B. The production possibilities curve between tanks and automobiles will appear as a straight line. C. The production possibilities curve between tanks and automobiles will shift outward. D. Decreasing opportunity costs will occur with greater automobile production.
Suppose you operate in a monopolistically competitive market. If you sell your good at a price of $20 and your average cost of production is $15:
A. your market may be in long-run equilibrium. B. you cannot be in short-run equilibrium. C. you should expect competing firms to enter your market and shift the demand curve for your good to the left. D. you should expect competing firms to enter your market and shift the demand curve for your good to the right.
The alteration of exchange rates to move the economy to internal and external balance may lead to all EXCEPT
A) a balance of payments crisis. B) changes in the terms of trade. C) changes in the level of imports or exports. D) changes in interest rates. E) a guaranteed unilateral improvement in economic wealth.