Which of the following is correct?
A. The excess capacity problem diminishes as the monopolistically competitive firm's demand curve becomes less elastic.
B. The excess capacity problem means that monopolistically competitive firms typically
produce at some point on the rising segment of their average total cost curve.
C. The greater the degree of product variation, the lesser is the excess capacity problem.
D. The greater the degree of product variation, the greater is the excess capacity problem.
Answer: D
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Interest is ultimately
A) any return on investment. B) the price of money. C) unearned income. D) the difference between the subjective value of a good now and a good later.
The vicious circle of poverty refers to a condition where
a. people are poor because they cannot invest in capital goods and they cannot invest in capital goods because they are poor b. people who borrow money at high interest rates can never get out from under the indebtedness created c. people invest in unprofitable projects and keep pouring loanable funds into those projects in the hope of salvaging them d. people prefer consumption goods to capital goods so there are insufficient capital goods to propel the economy out of poverty e. poverty is relative and poor people remain poor because the wealthy grow wealthier
A decrease in the marginal revenue product of land will: a. decrease the supply of land
b. increase the rental earnings from land. c. increase the price of land. d. decrease the demand for land.
Evidence suggests that education raises the earnings of the workforce mainly by
a. teaching workers how to demand more pay. b. keeping young people out of the labor force, thereby reducing the supply of labor. c. increasing the marginal productivity of labor. d. teaching people to read and write, although education beyond this point does not seem to increase worker productivity.