Which of the following is a factor that can motivate changes in the costs of transferring knowledge?
A. Changes in technology
B. The nature of knowledge to be transferred
C. The form of government in the country
D. The prevailing tax rates
Answer: A
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The user cost of capital is negatively related to ________
A) the real rate of interest B) the depreciation rate C) the expected rate of change of the real price of capital D) the tertiary log of the nominal price of capital
When the Fed buys government securities, it:
A. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. B. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. C. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public. D. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
Suppose there is a reduction in foreign output (Y*). This reduction in Y* will cause which of the following in the domestic country?
A) a reduction in output B) a reduction in consumption C) a reduction in net exports D) all of the above E) none of the above
Which of the following is an example of a fixed input?
a. The acreage of a farmer's land. b. Machinery. c. The size of a firm's plant. d. All of these.