QUESTIONS FROM CHAPTER 7 1. Which one of the following is not an example of natu

Question

QUESTIONS FROM CHAPTER 7 1. Which one of the following is not an example of natural capital? a) The ozone layer b) A river c) A road d) Soil e) Air 2. The process of adding to productive capital over time is referred to as... a) Capital depreciation b) Net disinvestment c) Physical accounting d) Net investment e) Strong sustainability 3. Suppose you receive $10,000 and the prevailing interest rate is 10%. Using the definition of income proposed by John Hicks, what is your annual income (assume zero inflation)? a) $100,000 b) $10,000 c) $1,000 d) $100 c) so 4. Which one of the following statements about national accounting is false? a) Gross National Product does not account for natural capital depreciation b) Net investment is gross investment minus depreciation c) Capital depreciation accounts for wearing-out of human-made capital over time d) A negative net investment implies a decline in national wealth e) Net National Product does not account for capital depreciation 5. Which one of the following measures can be used to account for natural capital levels? a) Satellite accounts b) Net investment c) Gross investment d) Net National Product e) Gross National Product

Explanation / Answer

1.c because a road is a man made capital.

2. d

3.c

4.e because net national product is gross national product minus depreciation.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---