Economists define investment to include: Select one: O any increase in business inventories O the addition of cash to a savings account O the purchase of common or preferred stock O the purchase of any durable good, e.g. a car or a refrigerator
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Economists define investment to include:
Select one:
O any increase in business inventories
O the addition of cash to a savings account
O the purchase of common or
O the purchase of any durable good, e.g. a car or a refrigerator
Step by step
Solved in 3 steps
- What determines whether a good is “capital” or a “consumer good”? How it is purchased: with business funds or with personal funds How it is used: to produce further wealth, or to be consumed Where it is located: in a home or in a business Where it is purchased: from a wholesaler or from a retailer Who uses it: the person buying it or an employee of theirsAn automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sales markup to consumers. a. What is the total value of intermediate goods? b. What are the total payments to factors of production? c. What is the total value of sales? d. What is the value of GDP from the sale of this car?How to classify goods as consumption goods and capital goods? Is there any specific way to do so?
- Which of the following is an example of investment? OA. Continental buying Airbus planes O B. Mike buying an Apple iPad O C. Ron buying stocks and bonds. O D. Randy buying a BMWWhat is the term "investment" define? Explain in a economic sense.The most basic concept in economics is O wealth. O scarcity. O income. O spending.
- Suppose that Yvette receives a pay raise of $1,200 per year. She can either use the extra money to consume goods and services, or she can save it by depositing it in a bank For each of the alternative annual interest rates in the following table, indicate how much interest Yvette would eam per year on her annual raise if she saves it. (Note: Assume that no income taxes are deducted.) Interest Rate Interest Earned (Dollars) (Percent) (Dollars) 20 A higher interest rate gives Yvette, incentive to save.Output in the economy can be increased by O adding more workers increasing the number of machines O investing in education all of the aboveQuestion 14 Payments to households not in exchange for goods and services currently produced are: O a consumption expenditures O b.investment expenditures Oc transfer payments. Od government purchases.
- Investment is defined as what consumers do with their savings. C) financial capital. O spending on capital goods by governments. the purchase of new capital goods by firms. O the purchase of a stock or bondUse the following consumption schedule to answer the next question. At income level 3, the amount of saving is represented by the line segment: Consumption A B 45° C 1 O Multiple Choice FD. 3 Disposable Income FH. GH. m O FG. 2 G HAgain, please work with the following data set. It describes production of the only three goods made by Economy Zeta, along with their prices, for each of three years. Quantity Price of Quantity of Price of Quantity of Price of of Food Food Energy Energy Shelter Shelter 2018 800 $5 1000 $10 200 $100 2019 850 $6 1100 $12 240 $100 2020 850 $7 1200 $14 300 $100 Year Economists estimate that the average person in this economy consumes 12 units of food, 20 units of energy, and 2 units of shelter over the relevant period. 2018 is the base year. Using the GDP deflator, the inflation rate between 2018 and 2019 for this nation is ______________ percent. (Enter your answer "as a percent, but without the percentage sign." If you think the inflation rate is 99.99 percent, enter only 99.99 in the blank.)
