The level of capital stock increases when investment in physical capital is:
A. greater than investment in human capital.
B. less than depreciation.
C. greater than depreciation.
D. greater than personal consumption.
Answer: C. greater than depreciation.
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If there is imperfect competition in the product market, the marginal revenue product of a factor will be greater than the value of its marginal product
a. True b. False Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. Title VI of the 1990 Clean Air Act Amendments specifically addressed the problem of tropospheric ozone. 2. To help the U.S. achieve its objectives to control ozone depletion, an escalating excise tax was levied on the production of ozone-depleting substances. 3. According to the Regulatory Impact Analysis (RIA) of the phaseout plan for ozone-depleting substances, the associated costs exceedthe expected benefits. 4. As the effective price of ozone-depleting substances rises due to the excise tax, the demand for substitute substances increases. 5. As a consequence of actions under the Montreal Protocol, the ozone depletion problem has been eliminated.
A monopolistically competitive firm:
A. sells products that are close substitutes for its competitors' products, so will locate as far away from its competitors as possible. B. will be more successful the more similar its output is to its competitors' output. C. sells products that are perfect substitutes for its competitors' products, so must compete on the basis of location. D. sometimes distinguishes its output from that of its competitors by locating in a more convenient place.