Other things being equal, a technological change that raises the value of marginal product of capital raises the rental rate of capital because the
A) supply curve of capital shifts leftward.
B) supply curve of capital shifts rightward.
C) demand curve for capital shifts rightward.
D) demand curve for capital shifts leftward.
C
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List the four main factors of production
What will be an ideal response?
Which of the following would tell us that resources are not flowing to their highest valued uses?
A) short-run economic profits B) short-run economic losses C) song-run economic profits D) Some firms are just breaking even.
Expansionary monetary policy results in a shift of the aggregate demand curve to the right. The effect of the monetary policy on the aggregate demand is:
A. direct from the money supply to the aggregate demand. B. indirect through the short-term and long-term interest rates. C. indirect through the government expenditures. D. direct from the money supply to the aggregate supply.
________ holds that those with equal ability to pay should bear equal tax burdens.
A. Vertical equity B. The benefits-received principle C. Progressive tax theory D. Horizontal equity