Suppose a firm's total cost of production is $40,000 per week, the wage rate is $1,000 per week and the cost of capital is $2,000. Which of the following gives the equation for the firm's isocost line?
A. L = 20 - 0.5K
B. K = 40 - 2L
C. K = 2,000 + 1,000L
D. K = 20 - 0.5L
D. K = 20 - 0.5L
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With respect to the stock market, the acronym IPO stands for
A. investment proposal option. B. immediate public offering. C. internal public offering D. initial public offering.
As interest rates increase, the quantity of loanable funds that are supplied to the loanable funds market
a. increases because people will be attracted by the higher rate of interest b. decreases because businesses borrow less c. increases because businesses borrow less d. decreases because people save less e. decreases because people will be attracted by the higher rate of interest
Which of the following statements is correct?
a. The demand for capital is derived from the demands for outputs. b. The demands for output are derived from the demand for capital. c. The demand for capital is derived from the demand for rent. d. The demand for rent is derived from the demand for capital.
Assume there are only two goods in the economy, apples and bananas. In 2018, 2,000 apples were sold at $1 each and 8,000 bananas at $0.60 each. In 2019, the price of apples rose to $1.5 and the quantity rose to 2,200; the price of bananas rose to $0.80 and the quantity sold rose to 8,500. Calculate real GDP in 2019 using 2018 as the base year.
What will be an ideal response?