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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"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)
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.