Suppose capital and labor must be used in fixed proportions to produce widgets and that the price elasticity of demand for widgets is zero. Then the wage elasticity of demand for labor by widget makers will be:
a. +1.
b. -1.
c. 0.
d. infinite.
c
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Suppose a manager of a firm is considering investing in a piece of equipment that will generate $20,000 in future operating profit each year for the next three years. The discount rate is 5 percent and the salvage value of zero. The equipment's current cost is $50,000 and this cost will be financed by the firm. If the tax rate on the firm's profit is 4 percent each year, what is the net present
value of the equipment? A) $4,464 B) $2,286 C) $3,569 D) -$2,581
nominal income
What will be an ideal response?
In a competitive economy, workers will be paid according to their
A) status. B) age. C) marginal productivity. D) need.
Considering the data in the table shown above and 2010 as the base year, what is the inflation rate between years 2010 and 2020?
A. 3.4 percent B. 41.7 percent C. 17.1 percent D. 0.0 percent