A profit-maximizing firm invests up to the point at which the marginal rate of return on capital is greatest
a. True
b. False
B
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Which of the following could shift the demand for a good to the right?
a. a decrease in income, if the good is a normal good b. an increase in the price of a complementary good c. a decrease in the good's price, if the good is normal d. an increase in the good's price, if the good is inferior e. an expectation of a future price increase
Suppose you are deciding how much oil to pump from your oil well in the next ten years. If you know oil would sell for $5 per gallon in ten years and the real interest rate is about 4%, the present value of the opportunity cost of selling the oil today would be about
A. $4.00. B. $2.50. C. $0. D. $3.38.
In the United States, which workers displaced by trade are able to adjust the easiest?
a. those in the service industries b. those in the manufacturing industries c. Evidence indicates that there is no difference across industries. d. There is no available evidence on this topic.
Noncontrollable expenditures are called "noncontrollable" because
A. they change without congressional action. B. only the president can approve these entitlement payments. C. the political process determines the size of the payments. D. they increase at the same rate as the public debt.