Firms buy new capital goods only if they expect this investment to yield:
a. a higher return than other possible uses of their funds.
b. the same return as other possible uses of their funds.
c. no return as compared to other uses of their funds.
d. a lower return than other possible uses of their funds.
a
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When it is difficult to assign and enforce property rights,
a. markets result in outcomes that are often inefficient. b. courts can easily negotiate efficient outcomes. c. establishing better property rights is always the best way to deal with environmental problems. d. government regulation can never improve on the outcomes generated by competitive markets.
Which of the following would not shift the supply curve for mp3 players?
a. an increase in the price of mp3 players b. a decrease in the number of sellers of mp3 players c. an increase in the price of plastic, an input into the production of mp3 players d. an improvement in the technology used to produce mp3 players
At any given quantity, the willingness to pay in the market for gasoline is reflected in the
a. height of the demand curve at that quantity. b. height of the supply curve at that quantity. c. value to the producer of the last unit of gasoline sold. d. total quantity of gasoline exchanged in the market.
If an economy with constant returns to scale were to double its physical capital stock, its available natural resources, and its human capital, but leave the size of the labor force the same,
a. its output would stay the same and so would its productivity. b. its output and productivity would increase, but less than double. c. its output and productivity would increase by more than double. d. None of the above is correct.