A prerequisite of specialization is:
A. free enterprise.
B. a capitalistic economic system.
C. competition.
D. a medium of exchange or money system.
Answer: D
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Information that is not available to the general public about what is happening in a corporation is
A) opportunity benefit. B) limited liability. C) economic rent. D) inside information.
Surplus
What will be an ideal response?
Import quotas on products will increase the price consumers pay for imported products and:
Decrease the volume of exports Decrease the volume of imports Increase the volume of imports Have no effect on the volume of imports or exports
Suppose your company is in equilibrium, with its capital stock at its desired level. A permanent increase in the depreciation rate now has what effect on your desired capital stock?
A. Lowers it, because the user cost of capital is now higher B. Lowers it, because the future marginal productivity of capital is lower C. Raises it, because the future marginal productivity of capital is higher D. Raises it, because the user cost of capital is now lower