Accelerated depreciation laws may increase firms' investment in equipment because:
a. machines will wear out more rapidly.
b. profits will be increased.
c. the rental rate on capital will be reduced.
d. the price of machines will fall.
c
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Taxation of agricultural land at a lower rate than commercial property might be justified _____
a. on utilitarian grounds b. on the benefit principle c. on the ability-to-pay principle d. on efficiency grounds
The demand for labor depends on ________ and ________.
A. the rate of price inflation; the price of the output produced B. the supply of labor; the price of output produced C. the supply of labor; the marginal product of labor D. the marginal product of labor; the price of output produced
The economy could reach point W if it
A. reduced the unemployment rate.
B. achieved economic growth.
C. decreased its quantity of land, labor and capital.
D. shifted resources from butter production into the manufacturing guns.
Other things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of the following would happen?
A. Marginal costs and average variable costs would both rise. B. Average fixed costs and average variable costs would rise. C. Average fixed costs would rise, but marginal costs would fall. D. Average fixed costs and average total costs would rise.