Which would be considered an investment, according to economists?
A. The sale of a retail department store building by Sears to JCPenney.
B. The purchase of newly issued shares of stock in Dell.
C. The construction of a new plant by Ford.
D. Public transfer payments.
Answer: C
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Which of the following statements would Milton Friedman agree with concerning the conduct of monetary policy?
A) Information lags are short, enabling the central bank to respond quickly to changes in the economy. B) There is little uncertainty over the effect of a change in the money supply on the economy. C) There are long and variable lags between monetary policy actions and their economic results. D) Wage and price adjustments are relatively slow, so changing the money supply will have a minimal impact on the real economy.
Marginal cost typically ________ and marginal revenue typically _________ with increasing output
a. rises; falls b. falls; rises c. rises; rises d. falls; falls