What is meant by capital stock?
What will be an ideal response?
For a single firm, its capital stock is equal to the current market value of the firm's plant, equipment, inventories, and intangible assets.
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The economic incentive for third-degree price discrimination is based upon ________.
A. differences among sellers' costs B. a desire to evade antitrust legislation C. prejudices of business managers D. differences among buyers' elasticities of demand
To eliminate the inefficiency resulting from pollution that creates an external cost, the government can impose a pollution tax on producers that is equal to the
A) MSB. B) MC. C) marginal external cost. D) MSC. E) price.
An increase in exports of goods or services with no change in imports of goods or services
A) decreases GDP. B) increases GDP. C) may increase or decrease GDP depending on whether it is the export of goods or the export of services that increased. D) has no effect on GDP.
Harold, a delivery man, washes and irons his own shirts. Sarah, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?
a. Harold must enjoy ironing more than Sarah does. b. Harold must be better at ironing than Sarah is. c. The opportunity cost of ironing is greater for Harold. d. Harold probably has an absolute advantage in ironing. e. Sarah has a higher opportunity cost of laundering her clothes than Harold does.