The role that dead capital plays in a country's economic growth is that
A) growth increases since the firms using the dead capital are using it for free.
B) growth increases because the dead capital is replaced with more technologically efficient capital.
C) growth neither increases nor is impaired by dead capital.
D) growth is impaired since the capital cannot be allocated to its most efficient use.
D
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A market's structure is described by
A) the number of firms in the market. B) the ease with which firms can enter and exit the market. C) the ability of firms to differentiate their product. D) All of the above.
When there is inflation in the economy, it implies that the:
A. Price index is rising and the purchasing power of money is also rising B. Price index is falling and the purchasing power of money is also falling C. Price index is falling and the purchasing power of money is rising D. Price index is rising and the purchasing power of money is falling