There is an opportunity cost associated with
A. only investments made with borrowed funds.
B. only investments made with funds received from the sale of new bonds.
C. only investments made with retained earnings.
D. every investment project, no matter how it is funded.
Answer: D
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The Fed usually prefers the inflation rate to hover around ________
A) 6% B) 10% C) 2% D) 5%
The marginal productivity theory of income distribution holds that ______.
a. the most productive employees increase income by maximizing the substitution effect b. owners of the means of production receive higher payments than workers or land owners c. labor, land, and capital owners are all paid for the value of their contribution to output d. union workers will receive higher wages than nonunion workers for comparable labor
In a price system, changes in prices
A) make it difficult for the system to function well. B) imply that people have made mistakes in the past. C) signal to everyone in the system what goods are relatively more or less scarce. D) signal to policy makers what goods should and should not be taxed more.
Refer to the graph below showing the marginal product (MPL) and the average product of labor (APL). At which quantity of labor employed is marginal product equal to average product?
A. A
B. B
C. C
D. D