According to the specialized-factor pattern, the more a factor is concentrated in the production of a product, the more it stands to gain from an increase in the price of this product.
Answer the following statement true (T) or false (F)
True
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If marginal product rises, then marginal costs rise
Indicate whether the statement is true or false
The invention of machinery that can double the amount of gold extracted from raw ore will likely: a. raise the world price of gold to pay for the new machinery
b. lower the world price of gold because any given amount can now be produced more cheaply. c. raise the world price of gold because miners' wages must double as their productivity doubles. d. lower the world price of gold only if new mining companies are not allowed to enter the industry.
Which of the following would shift the supply curve of loanable funds?
a. a change in the marginal physical product of capital b. a change in consumers' preferences for present and future consumption c. an increase in the price of the good produced by capital d. an increase in the interest rate e. a new productivity-improving technology
Projecting that it might temporarily fall short of legally required reserves in the coming days, the Bank of Beano decides to borrow money from its regional Federal Reserve Bank. The interest rate on the loan is called the ________.
A. Treasury bill rate B. discount rate C. federal funds rate D. prime rate