Economics MCQs

Page No. 216

The value of an asset depends upon ?


a its scrap values

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bits depreciation

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

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dthe cost of loans

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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

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bencourage the use of more capital increase demand for all inputs

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cencourage the use of less capital reduce demand for all inputs

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

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


awage differentials, skill levels

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btechnology, the ease of factor substitution

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cgovernment grants, international competition

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dpatents, skill shortages

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


aemployees

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bthe population

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cthe factors of production

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dthe working population

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Land will be allocated between competing uses so that ?


ahousing gets priority

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b industry gets priority

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c farming gets priority

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d the equilibrium rental rate equilibrium total demand with supply

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


avariable, technology

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b fixed, expectations

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c fixed, rental rate of capital

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dvariable, interest rates

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The marginal revenue product of capital is the ?


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

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badditional value of output from using more capital

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c change in company’s share price

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dchanging value of the capital stock

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the cost of using capital services is the ?


a wage rate of capital

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b interest charges

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cmarginal capital cost

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drental rate for capital

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Efficiency wages are ____ that raise _____?


alow wages, employment

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bhigh wages, labor supply

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chigh wages, productivity

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dhigh wages, employment

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


athey tend to work in relatively unskilled jobs

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beducational disadvantage

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cfirms are reluctant to invest in training

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dall of the above

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View Answer all of the above

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