The problem of dead capital can be eliminated by
A) changing the structure of import tariffs.
B) increasing the labor force participation rate.
C) making it easier for people to establish legal ownership of productive capital.
D) restricting population growth.
C
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The negative slope of the value of marginal product curve is most easily explained by
a. tight labor markets. b. a surplus of workers. c. diminishing marginal product. d. diminishing marginal cost.
When the price of an inferior good increases,
a. both the income and substitution effects encourage the consumer to purchase more of the good. b. both the income and substitution effects encourage the consumer to purchase less of the good. c. the income effect encourages the consumer to purchase more of the good, and the substitution effect encourages the consumer to purchase less of the good. d. the income effect encourages the consumer to purchase less of the good, and the substitution effect encourages the consumer to purchase more of the good.
Institutions that channel funds from people who have them to people who want them are called:
A. governmental agency. B. financial intermediaries. C. corporations. D. the Federal Reserve.
As general business conditions improve, all other factors constant the:
A. bond supply curve shifts left. B. yield on bonds will increase. C. price of bonds will increase. D. bond demand curve shifts right.