If the Replacement Cost of Installed Capital Equals $20 Trillion

question 84

Multiple Choice

If the replacement cost of installed capital equals $20 trillion and the market value of installed capital equals $25 trillion, then according to q theory, businesses should:

• A) add to capital stock.
• B) let capital stock shrink.
• C) keep capital stock unchanged.
• D) reduce product prices to increase profits.

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Definitions:

Active Transport

The process in which molecules travel through a cell membrane from an area of lesser concentration to an area of greater concentration, necessitating the use of energy.

Small Intestine

The small intestine is part of the digestive system, responsible for absorbing nutrients from food through its lining into the bloodstream.

Cholesterol

A waxy, fat-like substance found in the cells of all animals, essential for the formation of cell membranes, certain hormones, and vitamin D.

LDL Receptor

A receptor on cell surfaces that binds low-density lipoproteins, playing a critical role in cholesterol metabolism.