________ analysis by economists refers to the attempt to answer questions such as should a tax be imposed
A) Positive
B) Negative
C) Normative
D) Investigative
C
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Which of the following would be an example of FDI?
A) A Brazilian investor buys German government bond. B) An American buys a new Swedish car. C) An Italian firm builds a plant in Nebraska. D) A Canadian investor buys a French equity.
Refer to the following figure. The price of capital is $50 per unit:
What is the marginal rate of technical substitution at each cost minimizing equilibrium point?
A. 0.40 B. 2.00 C. 2.50 D. 0.80 E. impossible to tell without marginal products
Which one of the following is not an excise tax of the federal government?
A. Gasoline tax B. General sales tax C. Tobacco tax D. Alcoholic beverage tax
An industry utilizes capital and two types of labor. Unskilled labor is a substitute for capital while the skilled labor is complementary to capital. An increase in the price of capital will
A) cause the demand for labor to increase, raising wages of both skilled and unskilled labor. B) cause the wage of unskilled labor to rise relative to the price of skilled labor. C) induce the firms in the industry to cut back on all levels—capital, unskilled and skilled labor. D) cause the demand for skilled labor to rise and the demand for unskilled labor to fall.