Assume that an economy is in equilibrium when there occurs an increase in the supply of capital. The available quantity of labor remains fixed. Once the economy has adjusted to its new equilibrium, which of the following has increased?
A) the real wage
B) the rental price of capital
C) the share of capital income in national income
D) all of the above
E) none of the above
A
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Answer the following statement(s) true (T) or false (F)
1. An important motivation of environmental accounting is to help firms make accurate costs assessments about pollution prevention. 2. Extended product responsibility (EPR) places all the onus of product stewardship on the producer. 3. Re-manufacturing involves collecting, disassembling, reconditioning, and reselling returned products. 4. Design for the Environment (DfE) is a government-mandated program that promotes environmental considerations as part of the design and development of products. 5. Environmental technology transfers can involve dark green or light green technologies.
A positive externality exists and government wants to apply a per-unit subsidy in order to bring about an efficient outcome. Under what condition will the solution (the subsidy) be worse than the problem (the market failure)?
A) Under the condition that the subsidy is greater than the marginal external benefit (associated with the positive externality). B) Under the condition that the post-subsidy output is not farther away from the efficient level of output than the pre-subsidy output is from the efficient level of output. C) Under the condition that the post-subsidy output is farther away from the efficient level of output than the pre-subsidy output is from the efficient level of output. D) Under the condition that the subsidy is less than the marginal external benefit (associated with the positive externality). E) none of the above
Refer to Figure 8.4. Micro Oven's total fixed costs are A) $0. B) $200. C) $500. D) indeterminate from this information.
Salary caps were instituted to
A. make it so that one team could not sign all of the good talent. B. reduce overall player costs to teams. C. keep player salaries from becoming uneven. D. reduce overall player costs to teams and make it so that one team could not sign all of the good talent.