In which of the following situations would a firm be more likely to rely on a capital-intensive method of production?
A) When the rate of technological innovation is low.
B) When capital is relatively expensive.
C) When the firm's output cannot be produced using the assembly line method of production.
D) When labor supply is limited relative to the available amount of capital.
D
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During the colonial period, individual producers
(a) were never required to produce specific goods or services. (b) were, at times, required by colonial officials to produce certain staples if they wanted to produce cash crops. For example, the early governors of Virginia directed tobacco producers to also plant wheat. (c) produced only what they were directed to produce by colonial officials as part of an overall plan of colonial development. (d) received orders directly from England to produce what was viewed as most valuable to England.
Suppose that John Maestro, the owner of a tennis shop in Evanston, Illinois, decides to purchase a new machine that restrings tennis rackets in half the time it formerly took. The new technology costs $1,000 . and the MPC is 0.80 . How much real GDP will be generated from John's $1,000 initial investment?
a. $200 b. $500 c. $1,000 d. $2,000 e. $5,000
Which of the following causes external diseconomies of scale?
a. a downward-sloping short-run industry supply curve b. an upward-sloping short-run industry supply curve c. a downward-sloping long-run industry supply curve d. an upward-sloping long-run industry supply curve
In the loanable funds market, if the interest rate is above the equilibrium level
A) there is a shortage of saving. B) expected profit rates fall. C) government purchases decrease. D) there is a surplus of saving.