________ increases the quantity of capital, and ________ ...

[cartlidgeashley]

________ increases the quantity of capital, and ________ decreases the quantity of capital.
 
  A) Depreciation; net investment
  B) Investment; saving
  C) Gross investment; net investment
  D) Net investment; gross investment
  E) Investment; depreciation

Question 2

Suppose Puerto Rico and Hawaii currently have the same production possibilities so that the above figure is the PPF for hotels and consumption goods in the two areas.
 
  Hotels are a capital good that,once built, will help produce still more consumption goods. If Puerto Rico produces more hotels than Hawaii,
  A) Hawaii's PPF will shift outward further than Puerto Rico's PPF.
  B) Hawaii's PPF will shift inward.
  C) Puerto Rico's PPF will not shift.
  D) Puerto Rico's PPF will shift outward further than Hawaii's PPF.
  E) Puerto Rico's and Hawaii's PPF will shift outward by the same amount.

[nguyenhoanhat]

Answer to Question 1

E

Answer to Question 2

D

[cartlidgeashley]

Excellent

Great answer, keep it coming