Capital deepening occurs when
a. the per capita income increases over time.
b. real GNP increases over time.
c. the capital/labor ratio does not change.
d. the capital/labor ratio increases over time.
D
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Regardless of market structure, all firms
A) consider the actions of rivals. B) maximize profit by setting marginal revenue equal to marginal cost. C) produce a differentiated product. D) have the ability to set price.
Eliminating all farm price floors would
a. raise farmers' profit b. increase the MRP of farms c. raise the price of farm goods d. create an excess demand for farm goods e. lower farm property values
Suppose that the buyers of bread higher incomes and bread is a normal good. In the market for bread, this will cause the ________ and the equilibrium price to ________.
A. supply of bread to decrease; increase B. supply of bread to increase; decrease C. demand for bread to decrease; increase D. demand for bread to increase; increase
When a reinsurance company pays a claim, they pay
A. the rebuilding contractors directly. B. the victim directly. C. the government. D. the originating insurance company.