Which of the following statements correctly identifies a difference between labor and capital?
A) Capital can be rented or owned by a firm, but labor cannot be owned.
B) Labor can be rented or owned by a firm, but capital cannot be owned.
C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas capital is hired until a point where the average product of capital equals the price of capital.
D) Labor is hired until a point where the average product of labor equals the price of labor, whereas capital is hired until a point where the marginal product of capital equals the price of capital.
A
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The proponents of ________ and ________ think that the Federal Reserve should adopt a constant monetary growth rule
A) new Keynesianism; the new classical model B) the real business cycle model; Marxism C) the monetarist model; the Keynesian model D) rational expectations; monetarism
One of the assumptions of the Gordon Growth Model is that dividends will continue growing at ________ rate
A) an increasing B) a fast C) a constant D) an escalating
When an individual is judged by the characteristics of the groups to which he or she belongs rather than on his or her own characteristics, it is called:
A. adverse selection. B. statistical discrimination. C. moral hazard. D. the lemons model.
The value of $100 left in a certificate of deposit for four years that earns 4.5% annually will be:
A. $117.00 B. $145.00 C. $119.25 D. $120.00