The inefficiencies associated with dead capital can
A) lead to increased consumption.
B) increase the amount of investment as businesses look for more technologically advanced capital.
C) lead to more economic freedom as firms try to get rid of the inefficient capital.
D) reduce the rate of return on investment.
D
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A soft-drink bottling company supplies six-packs of orange flavored soda to retailers for a price of $2 each. If the components in each six-pack costs the bottling company $1.50, the value added, to each six-pack, by the bottling company is:
a. $2.00. b. $1.50. c. $1.25. d. $1.00. e. $0.50.
Given that firms change their prices infrequently, a business that has just raised its price will have a __________ relative price; over time as its price remains fixed its relative price __________
Fill in the blank(s) with correct word
If interest rates rose more in Japan than in the U.S., then other things the same
a. U.S. citizens would buy more Japanese bonds and Japanese citizens would buy more U.S. bonds. b. U.S. citizens would buy more Japanese bonds and Japanese citizens would buy fewer U.S. bonds. c. U.S. citizens would buy fewer Japanese bonds and Japanese citizens would buy more U.S. bonds. d. U.S. citizens would buy fewer Japanese bonds and Japanese citizens would buy fewer U.S. bonds.
Jody has purchased a non-refundable $75 ticket to attend a Miley Cyrus concert on Friday night. Subsequently, she is asked to go to out dinner at no expense to her. If she uses cost-benefit analysis to choose between going to the concert and going out to dinner, the opportunity cost of going out to dinner should include:
A. neither the cost of the ticket nor the entertainment value of the concert. B. the cost of the ticket plus the entertainment value of the concert. C. only the cost of concert ticket. D. only the entertainment value of the concert.