In the language of economics, which of the following would be defined as investment?
a. The purchase of a U.S. savings bond
b. The purchase of 100 shares of Ford Motor Company stock
c. The deposit of $1,000 into a savings account
d. The purchase of $500 worth of gold
e. The accumulation of inventories by a firm
E
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Refer to the figure above. The labor market is currently at point E. Which of the following is likely to happen if a recession hits the economy assuming that wages are flexible?
A) The labor market equilibrium will move from E to H. B) The labor market equilibrium will move from E to D. C) The labor market equilibrium will move from E to F. D) The labor market equilibrium will move from E to G.
What is the largest possible loss that is consistent with a firm producing in a perfectly competitive market in long-run competitive equilibrium?
a. An amount equal to (price less average variable cost). b. An amount equal to total variable. c. Zero. d. An amount equal to total fixed cost.