The relationship of dead capital to inefficient production is
A. that outdated equipment will lead to inefficient production.
B. nonexistent since the capital is already dead.
C. that without clear ownership it is not possible to sell or transfer a resource so that it can be used efficiently.
D. that when the dead capital is replaced by more technologically advanced capital, economic growth occurs.
Answer: C
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Which of the following would be least likely to cause the production possibilities curve to shift outward?
a. a decreased desire for leisure by workers in the economy. b. an invention that requires fewer resources to produce a good. c. a shift in consumer preferences that causes expansion in the output of one product and a decline in output of other products. d. an expansion in the man-made productive resources available to the economy as the result of a high rate of investment.
A decrease in the capital gains tax on income made from new capital investment will:
A. shift the supply of saving curve to the right. B. shift the demand for investment curve to the left. C. shift the supply of saving curve to the left. D. shift the demand for investment curve to the right.
We are interested in long-term growth primarily because it brings
A) higher price levels. B) lower price levels. C) higher standards of living. D) trade wars with our trading partners.
The figure above shows a typical perfectly competitive corn farm, whose marginal cost curve is MC and average total cost curve is ATC
Assuming there are no changes in technology, in the long run the lowest possible price for corn is ________ per bushel. A) $2.50 B) $2.00 C) $3.00 D) $3.50