The Zonamo company produces waste disposal machines and sells them to militaries all over the world. The company started last year with $10 million of capital on hand and invested $15 million in new capital throughout the year
At the end of the year, the company's capital stock was $17 million. Hence, for the year, depreciation equaled ________ and net investment equaled ________.
A) $25 million; $5 million
B) $5 million; $5 million
C) $8 million; $7 million
D) $7 million; $8 million
E) $8 million; $15 million
C
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Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because
a. those who stand to gain have an incentive to tell the truth. b. those who stand to lose have an incentive to exaggerate their true costs. c. answers to the survey questions will always be downwardly biased. d. not everyone asked will be using the highway.
How are money cost and opportunity cost related to each other?
A. If markets function well, they are closely related. B. They are always identical in any economic system. C. Opportunity cost must always exceed money cost. D. Money cost is greater than or equal to opportunity cost. E. In a market economy, they must be equal to each other.