An act of production, as economists use the term, is demonstrated by which of the following?
A. An individual buys municipal bonds to avoid taxes.
B. A firm buys a pre-existing building in order to expand its operations.
C. A worker places money in a pension fund.
D. A local nonprofessional theater company performs a play.
Answer: D
You might also like to view...
Value is
A) the price we pay for a good. B) the cost of resources used to produce a good. C) objective so that it is determined by market forces, not preferences. D) the marginal benefit we get from consuming another unit of a good or service. E) the difference between the price paid for a good and the marginal cost of producing that unit of the good.
When there is a current account deficit, it is likely that
A) exports exceed imports for the country. B) the country is an exporter of capital. C) the capital account has a surplus. D) the country has a budget surplus.