A technological change that raises the value of marginal product of capital ________ the rental rate of capital because the ________
A) raises; supply curve of capital shifts leftward
B) lowers; supply curve of capital shifts rightward
C) raises; demand curve for capital shifts rightward
D) lowers; demand curve for capital shifts leftward
C
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A supply schedule is a table that reports:
A) the expected excess supply in the market at different prices. B) the profits earned by producers at different levels of production. C) the different quantities of a good that producers are willing to sell at different prices. D) the different quantities of a good that producers are willing to sell at different income levels.
If bond investors think they lack enough details to evaluate the likelihood of defaults on certain bonds, this will result in higher:
A) expected return B) liquidity C) information costs D) expected inflation
Which of the following sets of terms describes the problem of scarcity in economics?
A) goods, land, and needs B) labor, needs, and opportunity costs C) choices, opportunity costs, and trade-offs D) production, consumption, and wants
Refer to the graph shown. If the firm seeks to maximize profit, it should set a price equal to:
A. $10. B. $ 6. C. $ 4. D. $ 8.