According to Tobin's q theory, when equity prices are high the market price of existing capital is ________ relative to new capital, so expenditure on fixed investment is ________
A) cheap; low
B) dear; low
C) cheap; high
D) dear; high
D
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According to the graph shown, if the government decides to restrict trade, a deadweight loss is created equal to area(s):
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. F and H.
B. DFGH.
C. FGH.
D. G.
The addition to total physical product when one more unit of capital (or loanable funds) is used in production is called
a. marginal physical product of capital b. marginal revenue product of capital c. marginal use of loanable funds d. interest e. depreciation
In the following graph, the price of labor is $15 per unit. How many units of labor should a firm use to produce 2,000 units of output at the least cost?
A. 80 B. 100 C. 40 D. 50 E. none of the above
The average tax rate can be calculated by which of the following formulas?
A) the change in taxes due divided by the change in taxable income B) the change in taxable income divided by the change in taxes due C) total taxes due divided by total taxable income D) total taxable income divided by total taxes due