Which factor explains the variability of investment?
A. The regularity of innovation
B. The durability of capital goods
C. The constancy of expectations
D. The constancy of profits
B. The durability of capital goods
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Describe the main explanations for the downward rigidity of wages in the modern macroeconomy. Evaluate their probability of being correct and important.
What will be an ideal response?
The separation of corporate ownership and control removes most executive decisions from shareholder scrutiny, but offers an efficient division of labor between persons with differing skills, goals, and wealth
Indicate whether the statement is true or false
For any given firm in a monopolistically competitive market, the long-run economic profit tends to be __________ and firms operate to the ____________ of the minimum point on the average total cost curve.
a. positive; left b. negative; right c. negative; right d. zero; left
Say that Janie is exhibiting the endowment effect as she makes a decision. She is:
A. consuming on the basis of endorsements by celebrities. B. valuing what she already has more because she owns it. C. deciding on the basis of sunk costs. D. buying something she can't really afford right now because she expects to have savings in the future.