The market price of physical capital is $10 and the market wage rate is $5. If a firm is optimally hiring an additional unit of physical capital, the value of the marginal product of physical capital is:
A) $1.
B) $2.
C) $10.
D) $50.
C
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Which of the following accurately depicts the situation of India's trade in services and what it might mean for the global economy?
A) It is not perceived as threatening to the industrialized nations so it is likely to grow without any impact. B) Because it is nothing new, other economies have had time to adjust. C) It creates only harm to other national economies. D) It may lead to protectionist sentiment and policies in other nations as comparative advantages shift.
If the null hypothesis states H0 : E(Y) = µY,0, then a two-sided alternative hypothesis is
A) H1 : E(Y) ? µY,0. B) H1 : E(Y) ? µY,0. C) H1 : < µY,0. D) H1 : E(Y) > µY,0.
For a firm that wants to remain in business, which of the following costs could be avoided if it halted current production?
a. fixed costs b. variable costs c. sunk costs d. implicit costs
If the credit market is close to being a competitive market, an interest rate ceiling imposed by usury laws will bring misallocations of resources.
Answer the following statement true (T) or false (F)