Which of the following will occur when the capital stock increases?
A) profit per unit of capital will increase
B) profit per unit of capital will decrease
C) there will be no change in profit per unit of capital
D) there will be an ambiguous effect on profit per unit of capital
E) none of the above
B
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Plowback refers to the profits management decides to keep and reinvest in the firm’s operations.
Answer the following statement true (T) or false (F)
Over ½ of all the men and ¼ of all the women in the United States
A. work for the same employer for at least 15 years. B. work for the same employer for at least 10 years. C. work for the same employer for at least 20 years. D. work for the same employer for at least 5 years.
Price-fixing:
A. is prohibited by Section 7 of the Clayton Act. B. is a per se violation of the antitrust laws. C. may be either legal or illegal depending on whether or not it produces above-normal profits. D. is illegal under terms of the Federal Trade Commission Act.
Answer the following questions true (T) or false (F)
1. At a short-run macroeconomic equilibrium, real GDP is always equal to potential GDP. 2. Stagflation occurs when aggregate supply and aggregate demand both increase. 3. A decrease in government spending will result in a decrease in the price level and a decrease in real GDP in the long run.