A firm should consume physical capital until:
A) the value of the total product of physical capital equals the price of physical capital.
B) the value of the average product of physical capital equals the price of physical capital.
C) the value of the marginal product of physical capital equals the price of physical capital.
D) the value of the marginal product of physical capital equals the value of the marginal product of labor.
C
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In the United States, over the past 50 years the total labor force participation rate
A) has increased. B) has decreased. C) has remained more or less constant. D) has fluctuated substantially. E) first decreased slightly and then increased significantly.
If the money supply increases this will cause the interest rate to rise, investment to fall and GDP to fall
a. True b. False Indicate whether the statement is true or false
In economic terminology, the accumulated training and education that workers receive to increase their productivity is referred to as
A. human capital. B. labor. C. entrepreneurship. D. physical capital.
If a society only cares about efficiency and not equity, then
A) all points on the contract curve yield the same level of social welfare. B) it will not rely on competitive markets to allocate goods. C) it will maximize the utility of its worst-off member. D) an equitable outcome is impossible.