Financial capital
A) depends on saving and borrowing decisions.
B) is accumulated investment.
C) depreciates each year.
D) is another name for the machines and tools that businesses buy.
E) is independent of physical capital.
A
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Price floors are only effective below the market equilibrium.
Answer the following statement true (T) or false (F)
For firms that sell one product in a perfectly competitive market, marginal revenue is:
A. the additional revenue gained from selling one more unit. B. equal to average revenue. C. equal to market price. D. All of these are true.
Hayle Motors specializes in the production of fire trucks and has production units in five countries. Which of the following is NOT true about Hayle Motors?
a. It is a geographically divisionalized organization. b. It is divisionalized along product lines. c. Each of its five production units in the five countries function as stand-alone firms. d. Activities in each of its five units may be categorized functionally.
If the price in Canada was C$50 and the price in Switzerland was SFr 100, absolute purchasing power parity would indicate that:
a. The nominal value of the Swiss franc should rise by 100%. b. The nominal exchange rate should be equal to C$2/SFr. c. The nominal value of the Canadian dollar should rise by 100%. d. The nominal exchange rate should be equal to C$0.50/SFr. e. None of the above.