One type of factor of production is physical capital. All of the following are examples of physical capital EXCEPT
A) buildings
B) machinery
C) AM/FM radios
D) a hydroelectric power plant
C) AM/FM radios
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If the Fed wants to lower the nominal interest rate in the short run, the Fed ________ the growth rate of the quantity of money
A) raises B) lowers C) first lowers and then raises D) does not change E) None of the above answers is correct because the premise of the question is wrong since the Fed cannot affect the nominal interest rate, only the real interest rate.
In his book The Wealth of Nations, Adam Smith employed the example of a pin factory in order to explain what economic concept?
A) why no firm would want to hire so many workers as to experience a negative marginal product of labor B) the relationship between the marginal and average product of labor C) the law of diminishing returns D) the division of labor
Refer to the above figure. The firm is operating using MRP0. An increase in demand for the product has occurred. The relevant curve for the firm after the increase in price
A. is MRP0. B. is MRP1. C. is MRP2. D. could be MRP1 or MRP2 depending upon whether the firm was earning a positive profit.
Why is it that financial intermediaries are so important in most economies?
What will be an ideal response?