Human capital is
A. how firms use more humans than machines in the production process.
B. the accumulation of investments that make people more productive.
C. more costly than other forms of capital.
D. none of these answer options are correct.
B. the accumulation of investments that make people more productive.
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Profit maximization implies that firms will want to ________
A) accumulate capital while the MPK is greater than the real wage B) accumulate capital while the MPK is greater than the rental price of capital C) accumulate labor while the MPK is greater than the rental price of capital D) accumulate labor while the MPK is greater than the real wage E) none of the above
Exhibit 21-4 Coffee and tea output (pounds per hour) CountryCoffee Tea Brazil10 5 China 8 8 If specialization were carried out by each country in Exhibit 21-4 on the basis of comparative advantage, then:
A. Brazil would produce neither coffee nor tea. B. China would produce both coffee and tea. C. Brazil would produce tea and China would produce coffee. D. Brazil would produce coffee and China would produce tea.
Which of the following is most representative of the functional finance view of the macroeconomy?
A. Budgets should be balanced. Doing otherwise is morally wrong. B. The government should decide on tax and spending plans based on their effects on the economy. C. The economy is self-regulating and the best thing the government can do to enhance stability is to stay out of the way. D. Crowding out almost completely cancels out any deficit spending, so fiscal policy is likely to be ineffective.
If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could
A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market. B) appeal to firms' environmental conscience to pollute less. C) subsidize production. D) rely on the Coase Theorem.