Holding other factors constant, if new environmental regulations increase firms' cost of operating capital, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; decrease
B. decrease; increase
C. increase; increase
D. decrease; decrease
Answer: D
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According to this Application, China's growth rate was faster than India's during this 26 year period because
A) China received more contributions from human capital than India received. B) China's growth was based more on human capital and India's growth was based more on physical capital. C) China's growth was based more on human capital and India's growth was based more on technological progress. D) China invested more in physical capital than India invested.
The tax base of the value added tax and a turnover tax are the same
a. True b. False
As a result of a decrease in the price of gasoline, consumers can afford to buy more gasoline for more driving trips. This is an illustration of
A. consumer sovereignty. B. the substitution effect. C. diminishing marginal utility. D. the income effect.
Inga and Ron both work for the same firm on the same career ladder. Each has the same stock of human capital except for one difference: Inga has worked at the firm for 10 continuous years but Ron has had two leaves of absence mixed in with his 10 years of experience with the firm. One should expect:
A. Inga and Ron to earn the same income. B. Inga to earn twice as much as Ron. C. Ron to earn more than Inga. D. Inga to earn more than Ron.