Technological advances affect the net capital stock by
a) reducing the volatility of investment
b) inducing obsolescence
c) lowering the marginal product of capital
d) shrinking the gap between gross and net investment
e) raising the aggregate gearing of firms
b) inducing obsolescence
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The Gini coefficient is really a point estimate of equality at a certain time period. Why is this a limiting factor when it comes to examining issues of equality over a lifetime?
What will be an ideal response?
Momentum investing can be described as
A) consistent with the efficient markets hypothesis. B) similar to mean reversion. C) follow the picks of investors who have been successful in the past. D) the trend is your friend.
A commercial bank has actual reserves of $1 million and checkable-deposit liabilities of $9 million, while the required reserve ratio is 10 percent. The excess reserves of the bank are:
A. $100,000. B. $1 million. C. $50,000. D. $900,000.
If price is increased by law from a market equilibrium value of $5 to a higher value of $6:
A. producer surplus will decrease and there will be some lost surplus. B. consumer surplus will decrease and there will be some lost surplus. C. both producer surplus and consumer surplus will increase. D. there will be lost surplus, as both producer surplus and consumer surplus decrease.