If Investment in Capital Equipment Requires Two to Three Years

question 23

Multiple Choice

If investment in capital equipment requires two to three years between conceptualization and start-up to production,then

• A)the gap between the desired capital stock and the existing capital stocks is closed slowly.
• B)a change in expected sales will not increase output.
• C)V* will be smaller than expected.
• D)All of the above are correct.

Identify the three levels of the mind according to Freud.

Differentiate between the id, ego, and superego.

Describe the role of the unconscious mind in human behavior and personality.

Recognize how Freud’s theory applies to behavior and personality traits.

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Definitions:

Willingness To Pay

This is the maximum amount a consumer is prepared to spend on a good or service, reflecting the value the consumer places on it.

Demand Curve

A graphical representation showing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale.

Consumer Surplus

The imbalance between the funds consumers are willing to dedicate to a good or service and the funds they actually dedicate.