If a firm can borrow or lend at a 10 percent annual interest rate, it will
a. buy all units of capital with a marginal rate of return above 10 percent
b. buy all units of capital with an average rate of return above 10 percent
c. buy all units of capital with a marginal rate of return below 10 percent
d. buy all units of capital with an average rate of return below 10 percent
e. select only the unit of capital with the highest marginal rate of return, assuming it is above 10 percent
A
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A U.S. citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own U.S. bank account in New York. How is this transaction accounted for in the balance of payments?
A) financial account, U.S. asset export B) current account, U.S. service import C) current account, British good export D) financial account, British asset import E) financial account, U.S. asset import
If an increase in the price of Good X causes a decrease in the demand for Good Y, we can conclude that: a. Goods X and Y are complements. b. Goods X and Y are substitutes
c. Goods X and Y are normal goods. d. the price of Good Y will increase.
Which of the following statements is not true? a. Oligopolies usually have few firms each with some significant degree of market power
b. Only a small percentage of industries have four-firm concentration ratios above 85 percent. c. Market price is related to the concentration ratio. d. The United States is becoming more oligopolistic. e. Karl Marx believed the United States was becoming more oligopolistic.
A perfectly competitive firm earns an economic profit when:
a. price is above average variable cost. b. price is above average total cost. c. total cost exceeds total revenue. d. total variable cost exceeds total revenue.