In a capitalabundant country, free trade will cause a(n) __________ in the rental of capital and a(n) ____________ in the marginal product of capital.
a. increase; increase
b. increase; decrease
c. decrease; decrease
d. decrease; increase
Ans: a. increase; increase
You might also like to view...
Crest Toothpaste offers new whitening toothpaste one year, a new gel swirl design the next year, and an improved cleaning formula the year after. Crest Toothpaste does this because it is
A) a monopoly trying to decrease its costs. B) a perfectly competitive firm trying to increase its price. C) a monopolistically competitive firm trying to maintain its economic profit. D) driving its competitors out of business. E) a perfectly competitive firm trying to increase its costs so it can increase its price.
When a household owns shares of stock, _____
a. it has ownership rights in that firm b. it is entitled to the majority of the firm's profits c. it is liable to bear the entire loss faced by the firm d. it can consume the firm's products without paying for it e. it is responsible for correcting any defect in the product identified by the customers
.Nations will attract investment and its citizens will engage in productive activities when the institutions and policies of that country do which of the following?
What will be an ideal response?
Katie buys a house for $200,000 and rents it for $1,000 per month. Katie's annual rate of return:
A. is 0.5 percent. B. is 5 percent. C. is 6 percent. D. cannot be determined until she sells the house.