Financial capital is used to help finance
A) gross investment but not net investment.
B) net investment but not gross investment.
C) the purchase of physical capital by firms.
D) people's savings.
E) consumption expenditure by households.
C
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What is the short-run industry supply curve in a perfectly competitive industry?
What will be an ideal response?
In the short run when the marginal product of labor ________, the marginal cost of an additional unit of output ________.
A. falls; rises B. falls; falls C. rises; rises D. rises; doesn't change
Which of the following problems will most likely occur with a system of flexible exchange rates?
A. Macroeconomic instability as exports and imports fluctuate with the exchange rates. B. Government favoritism toward selected importers of goods and services. C. The emergence of black markets for foreign currency. D. Distortions in trade patterns away from the pattern suggested by comparative advantage.
Firms choose to price discriminate
a. To earn higher profits b. To sell goods to consumers who otherwise would not have purchased c. Both a and b d. None of the above