The opportunity cost of capital investment is the:
A. real interest rate.
B. value of the marginal product of capital.
C. price of new capital goods.
D. value of the marginal product of labor.
Answer: A
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Refer to Exhibit 7-1. What is the value of gross domestic product?
A. $6,062 B. $329 C. $349 D. $319
The Federal Reserve is:
A. the United States' central bank. B. a Congressional committee. C. another name for the U.S. Treasury. D. the largest commercial bank in the U.S.
The measure of the part of disposable income that is not consumed is
A. Savings. B. Depreciation. C. GDP. D. Net investment.
Suppose a price floor is imposed on eggs above their equilibrium price. The likely result will be:
A. a higher equilibrium price for eggs as the supply curve for eggs shifts left. B. a lower equilibrium price for eggs as the demand curve for eggs shifts left. C. a decrease in the quantity of eggs demanded. D. an increase in the quantity of eggs demanded.