An increase in which of the following variables will cause an increase in the user cost of capital?
A) rt
B) ?t
C) ?et
D) all of the above
E) none of the above
A
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Which of the following is an example of a negative externality (additional social cost)?
A. an increase in the value of land you own when a nearby development is completed B. the costs paid by a company to build an automated factory C. the higher price you pay when you buy a heavily advertised product D. falling property values in a neighborhood where a disreputable nightclub is operating
The concepts of comparative advantage, specialization, and trade:
A. can be useful in explaining why countries import and export certain goods. B. can be useful in explaining why individuals typically work at one job, and buy the other goods and services they need. C. can be useful in explaining why we allow ourselves to be interdependent on others. D. All of the statements are true.
If price supports are established, and producers are producing more than consumers want to buy at that price, to maintain producers' income the government will have to:
A. Reduce price supports B. Increase price supports C. Buy the surplus D. Restrict output
A move from J to K best represents a
A. change in quantity demanded.
B. change in demand.
C. increase in demand.
D. decrease in demand.