Investment is defined as the purchase of
A) financial assets and inventories only.
B) new capital goods but not additions to inventories.
C) any financial asset only.
D) new capital goods and additions to inventories.
E) additions to inventories only.
Question 2
Which of the following statements is true?
A) Labor markets in the United States are frictionless.
B) The market wage rate is always below the equilibrium wage rate in a frictionless labor market.
C) There is always some unemployment in a frictionless labor market.
D) Both employees and employers have complete information about each other in a frictionless labor market.
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