Net investment
A) equals gross investment plus depreciation.
B) is the only measure of investment used to calculate GDP.
C) equals gross investment minus depreciation.
D) is equivalent to the existing capital stock in the economy.
C
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The fact that more women have chosen to work as real wages rise is evidence that, for them:
a. leisure is an inferior good. b. income and substitution effects of higher real wages work in the same direction. c. income and substitution effects of higher real wages may work in opposite directions. d. income and substitution effects may work in opposite directions but that the substitution effect is stronger.
By itself, the substitution effect of an increase in the wage rate will
a. always lead to an increase in the quantity of labor supplied b. always lead to a decrease in the quantity of labor supplied c. lead to an increase in the quantity of labor supplied only if leisure is like a normal good d. lead to an increase in the quantity of labor supplied only if leisure is not a normal good e. lead to an increase in the quantity of labor supplied only if the income effect works in the same direction