Capital is paid according to the value of its marginal product
a. only if earnings from capital are paid to households in the form of dividends.
b. only if earnings from capital are kept within firms as retained earnings.
c. regardless of whether earnings from capital are paid to households in the form of dividends or whether those earnings are kept within firms as retained earnings.
d. None of the above is correct; unlike labor, capital is a factor of production for which earnings are unrelated to the value of marginal product.
c
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The above figures show the market for gasoline. Which figure shows the effect of the end of a nine month strike by workers at all U.S. oil refineries?
A) Figure A B) Figure B C) Figure C D) Figure D
International capital flows strengthen
A. monetary policy and have no effect on fiscal policy. B. monetary policy but weaken fiscal policy. C. monetary and fiscal policy. D. fiscal policy but weaken monetary policy.
A liability of the central bank in functioning as the bankers' bank is:
A. securities. B. currency. C. loans. D. accounts of commercial banks.
Suppose George withdraws $60,000 from his bank. If the reserve ratio is 25 percent, then this transaction will lead to a decrease of ________ in checking account balances.
A. $15,000 B. $45,000 C. $90,000 D. $180,000