The rental price of capital is the:
A. interest paid on loans.
B. equilibrium wage.
C. value of the expected flow of income gained from ownership.
D. amount producers pay to use a factor of production.
D. amount producers pay to use a factor of production.
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A store is choosing between advertising a credit card fee or a discount for paying cash to its customers. People will care more about:
A. getting the discount rather than avoiding the fee. B. avoiding the fee rather than getting the discount. C. neither; since it's the same outcome, people won't care one way or another. D. It is impossible to say without more information.
The antitrust laws in the United States were created in the late 1800s as a result of :
a. the emergence of large and dominant businesses in railroads, steel, oil, mining and finance. b. the government decision to take responsibility for the improvement of trade deficit. c. the first illegal cartel, created in late 1800s. d. a steep decline in prices of primary goods in the United States. e. the threats of an external aggression received by the country.
Economists call an institution designed to oversee the banking system and regulate the quantity of money in the economy
a. a central bank. b. a charter bank. c. a national bank. d. a state bank.
Recall the Application about how changes in supply affect the price of gasoline to answer the following question(s).Recall the Application. Suppose the price elasticity of demand for gasoline is 0.20 and the price elasticity of supply for gasoline is 0.55. If supply increases by 20 percent, the equilibrium price will decrease by:
A. 27 percent. B. 57 percent. C. 175 percent. D. 375 percent.