The concept of present value helps explain why the quantity of loanable funds demanded decreases when the interest rate increases
a. True
b. False
Indicate whether the statement is true or false
True
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The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. Suppose the marginal private cost of the 5th concert is $10,000. Then, for the 5th concert, the
A) marginal external cost equals $30,000. B) marginal social cost equals $30,000. C) marginal external cost equals the marginal private cost. D) marginal external cost equals $40,000. E) marginal external cost equals $10,000.
A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the
A) real interest rate. B) productivity relation. C) production function. D) marginal product.
Given input prices and the usual strategy of a profit-maximizing firm, efficient production occurs at
A. the highest isocost C for a given isoquant Q. B. the lowest isocost C for a given isoquant Q. C. the highest isoquant Q for a given isocost C. D. the lowest isoquant Q for a given isocost C.
The introduction of new technologies that allow producers to specialize in those activities in which they are relatively more efficient is an example of how overall productivity increases because of the:
A. equilibrium principle. B. principle of comparative advantage. C. scarcity principle. D. incentive principle.