The MRP of capital is defined as the
a. output produced by employing one more dollar of loanable funds
b. total cost attributed to employing one more unit of physical equipment
c. contribution of capital to the production of the good
d. change in capital required to produce one more unit of output
e. change in total revenue that results from adding an additional dollar of loanable funds to production
E
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How do critics of stabilization policy view the "political business cycle"?
a. They suggest shorter election cycles would improve stabilization. b. They believe that politicians cause economic instability, due mainly to the election schedule. c. They believe that the Fed can resist political pressure and stabilize the economy. d. They believe that politicians do not know enough economics in order to stabilize the economy.
Kate is a florist. Kate can arrange 20 bouquets per day. She is considering hiring her husband William to work for her. William can arrange 18 bouquets per day. What would be the total daily output of Kate's firm if she hired her husband?
a. 18 bouquets b. 19 bouquets c. 20 bouquets d. 38 bouquets
A production possibilities frontier with constant opportunity cost is considered:
A) convex. B) concave. C) a straight line. D) horizontal.
Susie has lost her job in a Vermont textile plant because of import competition. She intends to take a short course in electronics and move to Oregon, where she anticipates that a new job will be available. We can say that Susie is faced with:
A. seasonal unemployment. B. cyclical unemployment. C. structural unemployment. D. frictional unemployment.