Which of the following policies may decrease the level of capital intensity in industry?
a. an increase in the cost of capital
b. a decrease in the minimum wage
c. an increase in the elasticity of substitution
d. All of the above
Answer: d. All of the above
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Suppose the tax rate on interest income is 25 percent, the real interest rate is 4 percent, and the inflation rate is 4 percent. In this case, the real after-tax interest rate is
A) 4.0 percent. B) .5 percent. C) 2.0 percent. D) 1.0 percent. E) 3.5 percent.
"Only individual members of society earn income, not society itself." This statement is most closely associated with the political philosophy of a
a. utilitarian. b. liberal. c. libertarian. d. None of the above is correct.
A decrease in supply will increase prices least when demand is
A. perfectly inelastic. B. unit elastic. C. elastic. D. inelastic (but not perfectly inelastic).
Time is a key factor in investment decisions.
Answer the following statement true (T) or false (F)