Which of the following is an example of an investment in physical capital?
A. A firm purchases new equipment for a manufacturing process.
B. A firm pays for workers to take college classes.
C. A firm trains workers to operate new machinery.
D. A chemical firm employs chemists to develop new chemicals.
Answer: A
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The opportunity cost of a firm using its own capital is
A) economic depreciation. B) self-ownership depreciation. C) economic loss. D) normal loss. E) capital loss.
Using the table above, if the current market value of the dollar is 125 francs per dollar
A) investor A expects dollar appreciation, but B and C expect depreciation. B) investor A expects dollar depreciation, but B and C expect appreciation. C) all three investors expect the dollar to appreciate. D) all three investors expect the dollar to depreciate.
In one day, Brandon can either plow 10 acres or plant 20 acres. In one day, Christopher can either plow 14 acres or plant 14 acres. Which of the following statements about comparative advantage is CORRECT?
A) Brandon has a comparative advantage in both plowing and planting. B) Brandon has a comparative advantage only in plowing. C) Brandon has a comparative advantage only in planting. D) Christopher has a comparative advantage in both plowing and planting.
The market structure that is characterized by a small number of large firms that have some market power is called:
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.