Which ratio correctly highlights the similarity between neoclassical theory and Tobin's q theory?
A) the marginal product of capital divided by the user cost of capital
B) a firm's stock value divided by the value of its capital stock
C) a firm's capital stock divided by the value of its inventories
D) a firm's investment spending divided by the user cost of capital
A
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An increase in the price of wheat futures will tend to cause
A) a decrease in current wheat consumption. B) an increase in short-selling of wheat. C) a shortage of wheat in the future. D) a surplus of wheat in the future.
The price of a ride on the Washington, D.C. metro depends on the time of day you ride. This is an example of
a. exploitation. b. inefficiency. c. political interference with a market. d. pricing to spread out demand.
Explain how the following will affect the relative values of the dollar and the English pound
a. Income growth is higher in the United States than in England. b. Inflation is higher in England than in the United States. c. Real interest rates are higher in the United States than in England.
Which of the following events always would increase the size of the deadweight loss that arises from the tax on gasoline?
a. The demand for gasoline becomes more inelastic. b. The slope of the supply curve for gasoline becomes steeper. c. The amount of the tax per gallon of gasoline increases. d. All of the above are correct.