To avoid the stock versus flow issue in production, some economists discuss capital usage in terms of rented capital
For example, your firm may not directly own some of the capital inputs to your production operation, and these capital inputs are employed on an hourly or daily basis. Which of the following inputs is a good example of a capital input that acts like a flow? A) Land and buildings that are owned by the firm
B) A long-term licensing agreements that allow you to use a patented idea owned by another firm
C) A forklift that is rented on an hourly basis
D) all of the above
C
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The 2001 and 2003 tax cuts of the George W. Bush administration each had provisions to
A. phase out the estate tax. B. lower the earned income tax credit. C. raise tax rates at the lower end. D. raise tax rates at the upper end.
Over the last 50 years, in the United States the labor force participation rate for women ________, the labor force participation rate for men ________, and the over-all labor force participation rate ________
A) increased; decreased; increased B) did not change; increased; increased C) increased; decreased; did not change D) decreased; increased; increased E) increased; did not change; increased
If a monopolistically competitive firm's demand curve is shifting left, it will stop shifting when:
A. firms are positive but not large economic profit. B. the firm is earning negative economic profit. C. the firm is earning zero economic profit. D. price falls to marginal cost.
Refer to the accompanying figure. If Laura and Chris are the only two consumers in this market then at a price of $2.50 per pound, the market demand for hamburger is:
A. 3 pounds per week. B. 4.5 pounds per week. C. 1.5 pounds per week. D. 4 pounds per week.