Depreciation refers to a decrease in the value of a durable good caused by:
a. an increase in the price level.
b. changes in the interest rate
c. wear and tear over time.
d. changes in tax laws.
e. a decrease in its resale value.
c
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A ___________ exchange rate is a policy to allow the foreign exchange market to set the exchange rate of a currency.
a. pegged b. floating c. set d. dynamic
Referring to the Production Possibilities Frontiers in Figure 1.11 A and B, which depicts generalized growth when there is constant opportunity cost?
Figure 1.11
A. Fig. A B. Fig. B C. Either Fig. A or B is correct D. Neither Fig. A nor B are correct
The substitution effect
A. is when individuals consume more of one good and less of another. B. is associated with changes in relative prices. C. will have no effect if goods are unrelated. D. all of these answer options are correct.
Refer to Table 17.2. The marginal product of the fifth unit of labor is:
A. 50. B. 40. C. 30. D. 20.