According to the factor price equalization theorem, the ________ factor should oppose free trade policies in any given country
A) abundant
B) scarce
C) neither
D) Can't tell without more information
B
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The rate of interest that the Federal Reserve charges on loans to member banks is the:
a. open market rate. b. federal funds rate. c. discount rate. d. prime interest rate. e. reserve lending rate.
Profit is maximized at the output at which marginal revenue equals marginal cost
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. Rent is an excellent means of efficiently allocating the use of scarce land. B. Economists dislike the way the price mechanism works because it leads to extremely high rents and interest rates. C. The interest rate is especially important to long-term investment projects. D. The projected long-term corporate profits are important when considering investment projects.
Table 5.3National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$8,200Exports$1,700Government purchases of goods and services$2,500Social Security taxes$1,900Net investment$1,400Indirect business taxes$1,400Imports$1,900Gross investment$1,800Corporate income taxes$600Personal income taxes$1,500Corporate retained earnings$130Net foreign factor income$100Government transfer payments to households$1600Net interest payments to households$500On the basis of Table 5.3, the net addition to the capital stock is
A. $1,400 billion. B. $400 billion. C. $370 billion. D. $1,000 billion.