Which of the following items are considered physical capital?
I. shares of Ford stock traded on the New York Stock Exchange
II. the Taco Bell store nearest you
III. the rental cars owned by Hertz Rental-A-Car
IV. the salaries paid to Intel executives
A) II and III
B) I and IV
C) I, II and III
D) I, II and IV
A
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Suppose the economy is producing at the natural rate of output and the government passes legislation that severely restricts a company's ability to reduce production costs via outsourcing
Everything else held constant, this policy action will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run. A) an increase; an increase B) a decrease; a decrease C) a decrease; an increase D) no change; no change
The minimum point of the average total cost curve always occurs at a larger output level than the minimum point of the average variable cost curve because:
A. marginal cost is rising. B. average fixed costs are falling. C. marginal cost is falling. D. average fixed costs are rising.
An industry that can expand or contract without affecting the long-run per unit cost of production is:
a. decreasing cost industry b. increasing cost industry c. constant cost industry d. productive efficiency industry
The terms of trade reflect the:
A. rate at which gold exchanges internationally for any domestic currency. B. ratio at which nations will exchange two goods. C. fact that the gains from trade will be equally divided. D. cost conditions embodied in a single country's production possibilities curve.