If a firm's MRP of capital < MFC, the firm should
a. lower the interest rate
b. decrease its quantity demanded of loanable funds
c. increase its quantity demanded of loanable funds
d. hire more labor
e. raise the interest rate
B
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Suppose that many consumers tend to over-state the discount rate that should be used for computing the net present value of education, just as they do when making investments in durable goods like cars and appliances
What would happen if consumers (as a group) started to use lower discount rates when making decisions about their education? A) NPV of a degree declines, demand for eduction declines B) NPV of a degree declines, demand for education increases C) NPV of a degree increases, demand for education declines D) NPV of a degree increases, demand for education increases
Which of the following is (are) true when one firm's research and production can increase another firm's access to technological advances? a. It is called a technology spillover
b. Other firms will imitate and improve on the new knowledge. c. If there is no subsidy, the market equilibrium output level is less than the efficient equilibrium output level. d. All of the above.
A mixed economy is one in which ________.
A) both resources and means of production are extremely limited and generally confined to agricultural produce B) the government or other centralized group determines and controls all resources and means of production C) both individuals and government control resources and determine production methods D) either individuals or private firms control resources and determine production methods E) there is no government intervention whatsoever in industry
Corporations have a separation and control problem because
A. the shareholders control the firm. B. taxes are paid only by the board of directors. C. most of the profits are reinvested. D. owners and managers frequently have different incentives.