Holding other factors constant, an increase in the capital stock ________ the real wage and ________ employment.
A. increases; does not change
B. decreases; increases
C. increases; increases
D. increases; decreases
Answer: C
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Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000 . He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%. Abdul's annual explicit cost of capital is
a. $8,000. b. $4,000. c. $2,000. d. $1,000.
Disposable income is not:
A. the amount consumers have to spend on goods and services. B. income before tax. C. what consumers base their buying decisions on. D. total income minus taxes.
Refer to the table shown. If the market price is $6, a perfectly competitive profit-maximizing firm will produce:QuantityMarginal Cost1$3253749
A. 1 unit of output. B. 2 units of output. C. 3 units of output. D. 4 units of output.
Which of the following is an example of rent seeking?
a. Enrique offers large donations to politicians if they promise to support his causes. b. Gennifer donates small amounts to many politicians throughout the year. c. Christa regularly writes letters to her representatives urging them to support certain policies. d. Martin makes a large donation to a special interest group whose work he admires.