Refer to the graph above. Which of the following would shift the investment demand curve from ID 2 to ID 3?
A more rapid rate of technological progress
Greater inventories of capital goods
Lower expected rates of return on investment in capital goods
Higher business taxes on capital goods
A more rapid rate of technological progress
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Moral hazard in a transaction hurts
a. The seller only b. The buyer only c. Both parties d. None of the parties
The level of an economic activity should be increased to the point where the ____ is zero
a. Marginal cost b. Marginal benefit c. Net marginal cost d. Net marginal benefit
Which of the following statements describes a shortage?
a. At a lower price, the quantity demanded is below the quantity supplied. b. At the existing price, the quantity demanded is below the quantity supplied. c. At a higher price, the quantity demanded exceeds the quantity supplied. d. At the existing price, the quantity demanded exceeds the quantity supplied.
Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 4?L?K. The firm has _____ units of capital. If the firm uses an efficient production method and hires _____ workers, it can produce _____ units of output.
A. 100; 100; 40,000 B. 100; 225; 90,000 C. 225; 100; 400 D. 225; 225; 900