In Chapter 10, Depreciation Is Assumed to Be

question 8

Multiple Choice

In Chapter 10, depreciation is assumed to be

• A) a fixed proportion of real GDP.
• B) a fixed proportion of the capital stock.
• C) a fixed absolute amount.
• D) zero.
• E) a fixed proportion of the capital-labor ratio.

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Definitions:

Apples

A type of fruit that is typically round, with red, green, or yellow skin, and sweet to tangy flesh.

Bananas

An edible, lengthy fruit generated by several species of substantial, flowering herb plants in the Musa genus.

Utility Function

A representation of a consumer's preference structure ranking different bundles of goods by their level of satisfaction or utility.

Price

The financial cost of purchasing a product or service.