Which statement is false?
A. Rent is an excellent means of efficiently allocating the use of scarce land.
B. Economists dislike the way the price mechanism works because it leads to extremely high rents and interest rates.
C. The interest rate is especially important to long-term investment projects.
D. The projected long-term corporate profits are important when considering investment projects.
B. Economists dislike the way the price mechanism works because it leads to extremely high rents and interest rates.
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A person will choose to buy a good as long as
A) marginal benefit is at least as great as price. B) consumer surplus is positive. C) marginal benefit is positive. D) consumer surplus is at least as great as price.
Between 1836 and 1851 travel time between New York and Chicago was cut from
A. a month to two days. B. a month to a week. C. two weeks to one week. D. two weeks to two days.
If more foreign steel plants relocate to the United States, we would expect
A) the U.S. supply curve for steel to shift to the right. B) the U.S. supply curve for steel would shift to the left. C) that the U.S. steel market would not respond. D) that U.S. steel demand might change, but U.S. steel supply would remain the same.
If the economy has a recessionary expenditure gap of $15 billion and the MPS is 0.3, then the equilibrium level of GDP is:
A. $16 billion below the full-employment level B. $21 billion below the full-employment level C. $50 billion below the full-employment level D. $50 billion above the full-employment level