Which of the following statements is correct?
a. The market for capital is unlike the market for labor because the rental price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
b. The market for capital is unlike the market for labor because the purchase price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
c. The market for capital is like the market for labor because the rental price of capital is affected by the marginal product of capital, and the price of labor is affected by the marginal product of labor.
d. Both a and b are correct.
c
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An increase in the number of pineapple growers results in
A) an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. B) an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. C) an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. D) no change in the supply of pineapples and a movement along the supply curve of pineapples. E) None of the above answers is correct.
Why does GDP equal aggregate income and also equal aggregate expenditure?
What will be an ideal response?
An industry is characterized by scale economies and exists in two countries. In order for consumers of its products to enjoy both lower prices and more variety of choice
A) the two countries must engage in international trade with each other. B) each country's marginal cost must equal that of the other country. C) the marginal cost of this industry must equal marginal revenue in the other. D) the monopoly must lower prices in order to sell more. E) they must combine to become a multinational corporation.
Why might the response of far-sighted consumers reduce the multiplier effect of an increase in government expenditures?