The demand curve for capital is

A. its entire marginal physical product curve.
B. the downward-sloping portion of its marginal physical product curve.
C. its entire marginal revenue product curve.
D. the downward-sloping portion of its marginal revenue product curve.


Answer: D

Economics

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When the Fed decreases the money supply, interest rates

a. rise. b. fall. c. are unaffected. d. rise and then fall. e. fall and then rise.

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Economic mobility in the United States is

a. great, so many of those below the poverty line are there only temporarily. b. rare, so most of those below the poverty line are there for decades. c. rare, yet many of those below the poverty line are there only temporarily. d. unrelated to poverty.

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In a hyperinflation, the economy:

A. always collapses. B. can continue to function because people build expected inflation into wages and prices. C. will slow on its own to lower inflation. D. can continue to function but people are unwilling to hold any money.

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Which of the following is a question answered with normative economic reasoning?

A. If the college offers free textbooks for students, will more students read their textbooks? B. If the college provided less financial aid for out-of-state students, would more in-state students benefit? C. If the college increased its enrollment requirements, would class size decline? D. Should the college increase tuition to fund its athletic programs?

Economics