Although the law of diminishing returns is widely accepted in economics, it also ensures that the marginal revenue product must be positive
Indicate whether the statement is true or false
F
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All the following statements about the Federal Reserve are true EXCEPT the fact that it ________
A) is a public authority B) regulates a nation's depository institutions C) accepts checking deposits from the nation's residents D) controls the quantity of money
Studies have shown links between calcium consumption and a reduction in osteoporosis. How does this affect the market for calcium?
A) The calcium demand curve shifts to the right because of a change in tastes in favor of calcium. B) The calcium supply curve shifts to the right because of a change in tastes in favor of calcium. C) The calcium supply curve shifts to the left because this new information will increase the price of calcium. D) The calcium demand curve shifts to the left because this new information will increase the price of calcium.
Which of the following governmental expenditures are not included in gross domestic product?
a. The construction of federal buildings b. Social Security payments c. Salaries for senators d. Purchases of new defense weapons
A firm is considering using its own funds to finance an investment, but needs an estimate of the discount rate. Currently the firm is earning 4 percent on funds held in a bank account and 6 percent on funds held in stocks. If the firm has 20 percent of its funds in the bank account and the remaining 80 percent in stocks, what is the firm's weighted average cost of capital?
A) 5.8 percent B) 4.2 percent C) 4.4 percent D) 5.6 percent