If the value of the marginal product of physical capital is $10 and the marginal product of physical capital is 5 units, the price of the finished good that the capital is used to produce is:
A) $1.
B) $2.
C) $5.
D) $10.
B
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Which of the following sets of goods might, under the right circumstances, be substitutes for an automobile?
A) Buses, trains, planes B) Powerboats, blimps, motorcycles C) Motels, tents, cardboard boxes D) Designer suits, fine wines, fancy homes E) All of the above.
Gordon's plots of the effectiveness lags of monetary policy over the periods 1961-1975, 1976-1990, and 1991-2007 show the effectiveness lags have become ________ and the overall response of GDP to monetary policy has ________
A) shorter, decreased B) shorter, increased C) longer, decreased D) longer, increased
Referring to the graph above, a movement from point H to point I might represent ________
A) the increase in the inflation rate that occurs when the real interest rate rises B) the automatic response of monetary policy to an increase in the inflation rate C) an autonomous tightening of monetary policy D) any of the above E) none of the above
Which of the following is an example of an implicit cost for a firm?
A. the value of time worked by the owner. B. any wages and salaries paid to employed. C. forgone rent on property owned by firm. D. both a and c E. all of the above