When potential GDP increases,
A) there is a movement down along the AS curve.
B) there is a movement up along the AS curve.
C) there is neither a movement along nor a shift in the AS curve.
D) the AS curve shifts leftward.
E) the AS curve shifts rightward.
E
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The owner of a scenic waterfall is trying to decide whether to rent the site to a manufacturing firm as an industrial power source or to rent it to a recreational association, which would turn the site into a park and campground
Which of the following statements is true? A) An increase in the price of fossil fuels will increase the cost of renting it to the recreation association. B) Social welfare is maximized when the owner rents to the higher bidder. C) The cost to the owner of renting to one or the other depends entirely upon the owner's preferences between economic growth and recreational facilities. D) The owner can choose without regard to cost because the site is a free natural resource. E) The owner can choose without regard to cost insofar as the waterfall is privately owned.
According to Tobin's q theory, the principal objective of investment is ________
A) to increase eligibility for the investment tax credit B) to expand production C) to increase the market value of the firm D) to lower the replacement cost of installed capital