The marginal factor cost of borrowing $1,000 for new equipment when the interest rate is 10 percent and the MRP is $700 is
a. $1,000
b. $700
c. $100
d. $70
e. $0 since the firm won't borrow $1,000 when the MRP is only $700
C
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If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true?
A) The population has increased, but by less than 2%. B) The population has decreased. C) Real GDP has risen by more than 2%. D) None of the above is necessarily true.
Direct exchange rate intervention:
A. gives government greater power over exchange rates than the market. B. has no effect on exchange rates. C. gives government the ability to fix exchange rates at any level they choose. D. gives government limited control over exchange rates.
Suppose you work in a human relations office, and an employee, Ariana, comes to you with a set of statistics she has gathered about your company. Which of these statistics might indicate wage discrimination?
a. Fewer minorities were interviewed than whites. b. There are ten percent more males than females in management. c. Female mechanics earn ten percent less than male mechanics. d. Technicians make fifty percent more than janitors.
Which of the following could start a demand-pull inflation?
A) There is an increase in the quantity of money. B) There is an increase in government expenditures. C) There is an increase in exports. D) All of the above could be initial causes of demand-pull inflation.