Which of the following is an example of an investment in human capital?
A. A firm replaces manually controlled production with a computer controlled procedure.
B. A firm pays for workers to take college classes.
C. A firm purchases new equipment for a manufacturing process.
D. A chemical firm supports research to develop new chemicals.
Answer: B
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One of the characteristics of financial repression is
(a) negative real interest rates. (b) lack of credit rationing. (c) capital flowing to the highest rate of return. (d) all of the above. (e) none of the above.
Production of Hollywood movies is an increasing cost industry. Which of the following contributes the most to this condition?
a. The demand for carpenters to build sets b. The demand for painters to paint the theaters c. The demand for printers to print tickets d. The cost of advertising for the shows e. The cost of hiring known box-office superstars
________ is a cost that is independent of the quantity produced by the firm and is incurred by the firm in the short run.
A. Fixed cost B. Economic cost C. Variable cost D. Average total cost
Which of the following statements about absolute and comparative advantage is not true? A country may have:
A. neither absolute nor comparative advantage in the production of any goods. B. an absolute advantage but not a comparative advantage in the production of a good C. the absolute advantage in the production of all goods. D. a comparative advantage but not an absolute advantage in the production of a good.