A firm possesses too much capital if ________
A) the real rental cost of capital is equal to the marginal product of capital
B) the real rental cost of capital is less than the marginal product of capital
C) its investment spending exceeds its consumption outlays
D) the real rental cost of capital is more than the marginal product of capital
D
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Which of the following is a land resource?
A. an oil drilling rig B. a machine for detecting earthquakes C. natural gas D. a farmer
The demand for loanable funds is determined by the willingness of ________ to borrow money to engage in new investment projects
A) households B) banks C) government D) firms
Richard loses his job at the railroad due to a downturn in general business conditions. He is experiencing
a. structural unemployment. b. cyclical unemployment. c. seasonal unemployment. d. frictional unemployment.
The Gini coefficient for Algeria is about 0.4. How would this number be shown on a Lorenz curve?
A. The length of the Lorenz curve is 40 percent longer than the line of equality. B. It cannot be shown; the Lorenz curve and the Gini coefficient are alternative ways of measuring inequality. C. The area between the Lorenz curve and the line of absolute equality is 40 percent of the total area under the line of equality. D. The area between the Lorenz curve and the x-axis is 40 percent of the total area below the line of equality.