A fall in interest rates leads to:
a. an increase in the rental rate on a machine.
b. a decrease in the rental rate on a machine.
c. no change in the rental rate on a machine.
d. a fall in the marginal productivity of capital.
b
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As measured, GDP omits which of the following?
i. Illegal sales of goods and services ii. Changes in the amount of leisure time iii. Household production of goods and services A) i and ii B) ii and iii C) i only D) i, ii, and iii E) i and iii
The figure shows the market for college education. In order for the efficient amount of education to occur, the government could provide a voucher of ________ per student
A) $4,000 B) $8,000 C) $12,000 D) $20,000 E) $16,000
If actual inflation is lower than expected inflation,
A) there is a redistribution of wealth from borrowers to lenders. B) there is a redistribution of wealth from lenders to borrowers. C) there is no redistribution of wealth, but the total wealth in the economy increases. D) there is no redistribution of wealth, but the total wealth in the economy decreases.
The concepts of specialization and gains from trade can be applied to:
A. international trade. B. why globalization has expanded recently. C. consumer decisions. D. household decisions.