Which of the following is an example of a capital good?
a. an artificial Christmas tree used by a family year after year
b. a sweater worn by a sixth grade student
c. electricity used by a household to heat a swimming pool
d. a pencil used by a shopper making out a grocery list
e. a shovel used by a construction worker
A
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The crowding-out effect is the tendency for
A) higher government budget deficits to increase total savings. B) lower private saving to decrease investment. C) higher government budget deficits to decrease investment. D) higher private savings to decrease government budget surpluses. E) lower private saving to increase the budget deficit.
The short-run Phillips curve tradeoff becomes less favorable if either
A) the expected inflation rate or the natural unemployment rate increases. B) potential GDP or the natural unemployment rate increases. C) potential GDP or the natural unemployment rate decreases. D) the level of real GDP decreases or the natural unemployment rate decreases. E) the expected inflation rate increases or the natural unemployment rate decreases.