When interest rates allocate capital
A. many worthwhile projects fail to get funded and society is worse off.
B. only investment projects are funded for which the expected benefits of the projects equal or exceed the opportunity cost of the projects.
C. investment projects of firms tend to get funded while valuable social investments funded by the government tend not to get funded.
D. there is an under investment in capital and overspending on durable consumer goods.
Answer: B
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Use the firm's long-run cost-minimizing decision rule to explain the differences in the relative use of capital and labor in agriculture in the United States and the Peoples Republic of China
What will be an ideal response?
The key reason that the Soviet Union failed to develop new ways to make the economy efficient and was therefore not able to sustain economic growth was due to
A) the Soviet Union relying on entrepreneurs to develop new production technologies. B) the typical behaviors of managers and employees in a centrally planned economy. C) the failed attempt to convert to a market-based economy. D) the Soviet Union's lack of accumulating capital goods.
All of the following are examples of restraints of trade except which one?
A) bid rigging B) market division C) price fixing D) recoupment
In recent decades, countries with high economic growth have experienced _______ inequality, and those with low rates of growth have experienced __________ inequality.
A. increasing; decreasing B. increasing; increasing C. decreasing; increasing D. decreasing; decreasing