The demand for capital, as an input in production, will decrease if:
a. labor and capital are substitutes in production and the supply of labor decreases.
b. the demand for the final good it produces increases.
c. capital becomes more productive.
d. the price of capital decreases.
e. labor and capital are substitutes in production and the wage rate declines.
e
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Refer to the table above. Eduland has a comparative advantage in ________ shoes
A) both designing and stitching B) designing C) shutting its factory D) stitching
Banks use "credit-risk analysis" to
A) determine the appropriate interest rate to charge borrowers. B) determine whether to invest in the stock of a corporation. C) determine the appropriate interest rate to pay depositors. D) determine the likelihood of an audit by bank regulators.
A monopoly will be maximizing profits if it is operating at the point where:
a. price is at a maximum. b. average cost is at a minimum. c. average cost is at a maximum. d. marginal cost is at a minimum. e. marginal revenue = marginal cost.
According to the theory of economic Darwinism, in the absence of barriers to entry, firms that survive in the long run are those that:
A. do not compete with other firms in the industry on quality. B. provide productivity-based incentives to the employees. C. follow the most ethical practices. D. deliver products consumers want at the lowest cost.