Question

Label the hypothetical scenarios with the term that best fits The massage chairs at Courtney's Beauty Salon are worth less now than they were last year. This loss of value is : Answer Bank steady state The economy of the hypothetical country, Grebes, had no new net investment in 2013. Grebes is currently at its depreciation CASPAESRECSSERR Telly's Tornados had $25,000 in investment and $10,000 in depreciation last year. The $25, 000 - $10, 000 - S15, 000 is net investment. diminishing marginal product. When Calvin's Cattle Co. added a fifth tractor, output increased by less than when it added the fourth tractor. This increase is an example of

Answer 1

1. The loss of value of the massage chair is the depreciation, the depreciation is the wear and tear made to the capital goods. When we use that they lose the value. Ans: Depreciation.

2. A steady state economy does not grow when the time passes, this is because of the capital stock and the population growth will remain the same. The hypothetical economy Greebes in a condition of steady state. Ans: Steady state.

3. The net investment is found out by deducting the depreciation out of the gross investment. Ans: Net investment.

4. The diminishing marginal product occurs when the increase in the input produces less than the input added. Ans: Diminishing marginal product.