The break-even investment line becomes steeper when the depreciation growth rate ________ or the labor force growth rate ________
A) increases; decreases
B) increases; increases
C) decreases; increases
D) decreases; decreases
B
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Use the following figures to answer the next question.
A decline in aggregate expenditures from AE2 to AE1 resulting from the real-balances, interest-rate, and foreign purchases effects would be depicted as a ________.
A. shift of aggregate demand from AD2 to AD1 B. shift of aggregate demand from AD1 to AD2 C. movement from A to C along aggregate demand curve AD1 D. movement from C to A along aggregate demand curve AD1
Extractive economic institutions are:
A) likely to prevent entrepreneurs with new ideas from entering into the right line of business. B) likely to encourage entrepreneurs with new ideas from entering into the right line of business. C) found only in market economies. D) found only in command economies.
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. What will happen if the price of polo shirts decreases from $15 to $10?
A) consumers will buy no polo shirts.
B) the marginal cost of producing the third polo shirt will increase to $25.
C) producer surplus will fall from $13 to $3.
D) there will be a shortage of polo shirts.
Suppose Chip's Chips produces bags of potato chips. An example of a variable cost for this firm would be:
A. the factory building. B. the deep fryer. C. the potato peeling machine. D. None of these is an example of a variable cost.