A firm will continue investing up to the point at which the marginal revenue product of capital is equal to its rental cost.
Answer the following statement true (T) or false (F)
True
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A factor that turned out to be a weakness of the classical theory of growth is its
A) emphasis on saving and investment. B) assumption that the growth rate of the population increases when income increases. C) reliance on constant growth in technology. D) neglect of the subsistence real wage.
Under the U.S. Constitution, individual states
(a) have no power. (b) control laws regulating state businesses. (c) benefit from the ability to borrow from other countries to finance taxes due to the central government. (d) regulate trade with foreign countries conducted in and by the state.
Which of the following would likely cause aggregate demand to shift to the left?
A. Higher interest rates discouraging borrowing B. Higher tariffs on all imports into the United States C. Greater consumer confidence about the future D. All of these would likely cause aggregate demand to shift to the left.
If demand is more elastic, the portion of an excise tax borne by a buyer will
A. increase. B. decrease. C. be unchanged. D. increase for normal goods, decrease for inferior goods.