Depreciation refers to a decrease in the value of a good caused by
A) an increase in the price level.
B) a decrease in the price level.
C) "wear and tear" of capital goods over time.
D) the depreciation allowance.
E) a decrease in purchasing power.
C
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The economic boom between 2002 and 2006 was primarily a result of
a. a reduction in stock prices along with rising oil prices. b. a sharp reduction in the real price of resources and wages. c. an increase in both housing and stock prices. d. an increase in both resource prices and interest rates.
Consumers may not experience the benefits of economies of scale if a natural monopoly:
A.) Raises price and fails to pass cost savings on to consumers. B.) Engages in marginal cost pricing. C.) Raises output beyond efficient levels. D.) Is regulated by the government.
What does a balance of trade deficit imply?
a. exports of goods and services exceed imports of goods and services b. imports of goods and services exceed exports of goods and services c. investment income received from abroad exceeds investment income paid to foreigners d. investment income paid to foreigners exceeds investment income received from abroad e. investment by foreigners exceeds domestic investment in other countries
The equilibrium wage will definitely rise if:
a) Both the supply of labor and the demand for labor increase. b) Demand for labor increases and the supply of labor is constant. c) Demand for labor decreases and the supply of labor is constant. d) Supply of labor increases and the demand for labor is constant.