Which of the following is an example of an economic investment?
A. Purchasing shares of a mutual fund
B. Putting money in a bank CD
C. Buying a corporate bond or stock
D. Building a new bank office
Answer: D
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What will be an ideal response?
If a monopolistically competitive firm selling an information product engages in marginal cost pricing, it will
A. lower costs. B. fail to earn sufficient revenues to cover its fixed costs. C. break even. D. earn additional profits.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Explain the two basic mechanisms that increase GDP per capita over the long term
What will be an ideal response?