The value of the marginal product of capital can be calculated as the market price of the good multiplied by the marginal product of capital
a. True
b. False
Indicate whether the statement is true or false
True
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The demand for luxurious goods are usually unaffected by an increase in income
a. True b. False Indicate whether the statement is true or false
In 2015, exports represented:
A. about 13 percent of U.S. GDP. B. about 1 percent of U.S. GDP. C. about 30 percent of U.S. GDP. D. nearly 20 percent of U.S. GDP.
A corporation has been steadily losing money on one of its product lines. The factory used to produce that brand cost $20 million to build. The firm now is considering an offer to buy that factory for $15 million. Which of the following statements about the decision to sell or not is correct?
a. The firm should turn down the purchase offer because the factory cost more than $15 million to build. b. The $20 million spent on the factory is a sunk cost that should not affect the decision. c. The $20 million spent on the factory is an implicit cost that should be included in the decision. d. The firm should sell the factory only if it can reduce its costs elsewhere by $5 million. e. The firm's opportunity cost would be $35 million if it decides to sell the factory.
The aggregate supply curve is
a. the sum of all individual firms' supply curves. b. vertical in the short run. c. downward sloping in the short run. d. upward sloping in the short run. e. upward sloping both in the short run and the long run.