Which of the following is not true with respect to the rule used to determine the firm's profit-maximizing quantity demanded of capital?
a. It is similar to the rule used to determine the firm's profit-maximizing quantity demanded of labor
b. It is similar to marginal labor cost divided by marginal revenue.
c. It takes the interest rate into consideration.
d. It equates marginal revenue product of capital to marginal factor cost.
e. It equates the present value of capital to expected future rents.
E
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Deviations from purchasing power parity will be increasingly higher as international trade tariffs become more restrictive. This is mainly because:
a. arbitrage activities become less profitable. b. governments discourage purchasing power parity. c. the interest rate parity fails to hold. d. goods become more differentiated across countries. e. individuals develop hatred toward closed economies.
Relative to a closed economy, if Utopia opened itself to trade, domestic tile producers would
A. produce the same amount of tile. B. produce 150 fewer cases of tile. C. produce 100 fewer cases of tile. D. produce 150 more cases of tile.
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. The ________ imposed as a result of producing cars is $10.00 per car.
A. marginal private cost B. marginal damage cost C. total cost D. marginal social cost
Socialism is correctly described by which of the following statements?
A. Central planning is used exclusively to answer the basic economic questions. B. Markets are used exclusively to answer the basic economic questions. C. Tradition is used exclusively to answer the basic economic questions. D. Government ownership of many resources and centralized decision-making answers the basic economic questions.