The rate of discount is best described as the rate of
A) return on physical capital after the cost of capital has been removed.
B) return on financial assets after an inflation adjustment has been made.
C) interest used to derive the present values of future sums.
D) return on financial capital that has not been adjusted for inflation.
Answer: C
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One reason that firms hire labor at the point where w = MPN is
A) if w < MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers. B) if w > MPN, the cost (w) of hiring additional workers is less than the benefits (MPN) of hiring them, so they should hire more workers. C) if w < MPN, the cost (w) of hiring additional workers equals the benefits (MPN) of hiring them, so they have the right number of workers. D) if w > MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers.
If the marginal factor cost is greater than the marginal revenue product of a resource, the producer can increase profits by laying off some units of the resource
a. True b. False Indicate whether the statement is true or false
If the short-run Phillips curve is fairly horizontal, attempts to fight inflation will generate considerable unemployment
a. True b. False Indicate whether the statement is true or false
Which of the following can a homebuyer pay for indirectly when purchasing a home?
A) good weather B) a good school district C) a nice view D) all of the above