Economics MCQs

Page No. 216

The value of an asset depends upon ?


a its scrap values


bits depreciation


cthe present value of the future stream of income it can earn


dthe cost of loans



If workers get a real wage increase this will likely ____ and _____?


aencourage the use of more capital in the long run, reduce demand for all inputs


bencourage the use of more capital increase demand for all inputs


cencourage the use of less capital reduce demand for all inputs


dencourage the use of less capital, reduce demand for all inputs



Different capital intensity in different industries is mainly explained by _______ and ________?


awage differentials, skill levels


btechnology, the ease of factor substitution


cgovernment grants, international competition


dpatents, skill shortages



The functional distribution of income shows how national income is divided between ?


aemployees


bthe population


cthe factors of production


dthe working population



Land will be allocated between competing uses so that ?


ahousing gets priority


b industry gets priority


c farming gets priority


d the equilibrium rental rate equilibrium total demand with supply



In the short run, the supply of capital is ________ and in the long run will depend on _______?


avariable, technology


b fixed, expectations


c fixed, rental rate of capital


dvariable, interest rates



The marginal revenue product of capital is the ?


achange in a company’s balance sheet when it acquires new plant


badditional value of output from using more capital


c change in company’s share price


dchanging value of the capital stock



the cost of using capital services is the ?


a wage rate of capital


b interest charges


cmarginal capital cost


drental rate for capital



Efficiency wages are ____ that raise _____?


alow wages, employment


bhigh wages, labor supply


chigh wages, productivity


dhigh wages, employment



In the West Women and non-whites on average receive lower incomes than white men because ?


athey tend to work in relatively unskilled jobs


beducational disadvantage


cfirms are reluctant to invest in training


dall of the above


View Answer all of the above

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