With Respect to Long- Run Economic Growth, One Rationale for the Idea

question 3

Multiple Choice

With respect to long- run economic growth, one rationale for the idea that there may be increasing marginal returns to investment is that

• A)as further investment takes place the economy moves down to the right along the marginal product schedule.
• B)as further investment takes place the economy moves upward to the left along the marginal product schedule.
• C)initial investment shifts the the investment demand schedule to the left, making further investment less costly.
• D)the investment costs to "followers" are lower than those for "pioneers".
• E)initial investment shifts the the aggregate demand schedule to the left, making further investment less costly.

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Definitions:

Inventory Estimate

An approximation of the value or quantity of inventory, used for accounting or planning purposes.

Retail Method

An accounting method to estimate ending inventory and cost of goods sold by using a proportional relationship between the retail value and cost of goods.

Estimated Ending Inventory

An approximation of the value of inventory a company has on hand at the end of an accounting period.

Gross Profit Rate

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold.