If the productivity of capital rises, its MPP will _____ and its MRP will _____.
A. rise; rise
B. fall; fall
C. rise; fall
D. fall; rise
A. rise; rise
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Explicit costs:
A. are variable in the short run. B. measure the opportunity costs of the resources supplied by the firm's owners. C. measure the payments made to the firm's factors of production. D. are fixed in the short run.
Land is an example of an nonrenewable resource
Indicate whether the statement is true or false
Global environmental externalities are caused when pollution created in one country does which of the following?
a. Affects people in other countries who also caused the pollution b. Does not affect people in other countries c. Affects people in other countries who did not cause the pollution d. Positively affects people in other countries
Which of the following helps explain the multiplier effect?
a) Banks only hold a fraction of their deposits on reserve. b) Income is spent and re-spent in the circular flow model. c) People buy a lot of luxury items. d) Incomes tend to increase with inflation.