Investment in physical capital means
A. purchasing supplies.
B. purchasing equipment and buildings.
C. taking out loans.
D. hiring more employees.
Answer: B
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Suppose the marginal tax rate is 37 percent for an income level of $50,000 and 39 percent for an $80,000 income. This implies that the underlying tax structure is _____ in nature
a. fixed b. progressive c. regressive d. lump-sum e. proportional
Falling interest rates cause the market value of previously issued bonds to
a. rise. b. fall. c. remain unchanged. d. increase during periods of inflation but decline during periods of deflation.
Prices for industrial commodities such as steel rods or machine tools are:
A. heavy prices. B. sticky prices. C. auction prices. D. custom prices.
The Lawn Ranger, a landscaping company, has total costs of $4,000 and total variable costs of $1,000. The Lawn Ranger's total fixed costs are
A. $0. B. $3,000. C. $5,000. D. indeterminate because the firm's output level is not known.