The required rate of return that an individual demands on a real estate investment is determined in the:
A. user market
B. capital market
C. government
D. local market
Answer: B. capital market
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If a pollution tax in a market with an external cost changes the market so that it produces the efficient level of output, which of the following occurs?
i. The supply curve shifts leftward. ii. The price increases. iii. The quantity produced decreases. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
If ten cases of spring water are sold at a price of $6 each in a perfectly competitive output market and the marginal product of the last unit of labor is 5, then the marginal revenue product of that last unit of labor is
a. $60 b. $30 c. $50 d. $2 e. 60 cents
The article on China's $4 trillion of reserves indicates that the yuan's depreciation is due to
A. Intervention of the U.S. government to cause the dollar to depreciate. B. Intervention of the Chinese government to purchase dollars to suppress the yuan. C. Intervention of the Chinese government into the exchange markets to purchase yuan. D. Intervention on the part of the U.S. government to devalue the yuan.
If product price increases, then:
A. MP will increase. B. MFC will increase. C. MRP will increase. D. MP will decrease.