In the above figure, what is the opportunity cost of one bushel of corn?
A) 1 bushel of soybeans
B) 0.5 bushel of soybeans
C) 2 bushels of soybeans
D) unable to determine
C
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If d is the depreciation rate and K is the capital stock, the amount of investment required to keep the economy in a steady state is given by:
A) I = d - K. B) I = d + K. C) I = d × K. D) I = d/K.
Opportunity cost exists because
A) of scarcity. B) prices must adjust to eliminate shortages. C) production could not occur without the opportunity cost of using resources. D) the value of economic goods is positive while the value of goods is zero.
Which of the following is not a resource?
a. Land. b. Labor. c. Money. d. Capital.
Explain each of the determinants of the present value of expected profits from a buying a new machine
What will be an ideal response?