The rate of return on capital that is just sufficient to keep owners and investors satisfied is called
A. a minimum efficient scale.
B. the price-earnings ratio.
C. a normal rate of return.
D. economic profit.
Answer: C
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Which of the following raises the price of a used car and increases the equilibrium quantity sold?
A) a new 8 percent federal excise tax placed on all new car purchases B) an increase in wages for used car salespeople C) a special rebate program on all new cars D) None of the above answers is correct
An increase in the U.S. interest rate differential increases the demand for dollars
Indicate whether the statement is true or false
From 1998 to 2010, the cost of building a nuclear plant increased from $3 billion to $10 billion. If the marginal cost of producing electricity stays the same, then the average variable cost of producing electricity ________ while the average total cost of producing electricity ________.
A. stays the same; increases B. decreases; stays the same C. increases; stays the same D. decreases; increases
The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage
A. only the production of wheat will increase. B. only the consumption of both goods will increase. C. the production and consumption of both goods will increase. D. only the production of both goods will increase.