Which of the following correctly explains the demand curve for capital?
a. upward sloping because as owners face rising marginal costs, they will increase
supply
b. backward bending because as the marginal cost rises, owners decrease quantity
c. U-shaped because at both very high and very low levels of output, capital use is high
d. downward sloping because as more is employed, the value of the marginal product
falls
d. downward sloping because as more is employed, the value of the marginal product
falls
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
A share of an oil company can be worth $10 with a probability of 0.50 and $20 with a probability of 0.50. What is the standard deviation of the price of this share?
A) 3 B) 5 C) 6 D) 8.5
A central concern about common resources is
A. lack of profitability. B. high production costs. C. overuse. D. overproduction due to negative externalities.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.