1-The relationship between the marginal product of capital (MP_K), the product price (P), and marginal revenue product of capital (MRP_K) in a perfectly competitive market is MRP_K = (P)x (MP_K).

Group of answer choices

True

False

2-The desire for more capital:

Group of answer choices

meansa desire for more loanable funds.

a desire for less loanable funds.

is not relevant to the demand for loanable funds.

none of the above is true, since capital and loanable funds are the same thing.

3-When consumption exceeds income during a period, there is:

Group of answer choices

resaving

personal income

leisure saving

dissaving

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4-The key difference between a share of stock and a bond is that

Group of answer choices

bonds are issued only by the government, while stock is issued only by corporations

the holder of a share stock has a share in the ownership of a firm

the holder of a bond receives only one future payment

a share of stock is a riskless asset

5-An addition to the capital stock is:

Group of answer choices

net present value

dissaving

saving

investment

6-The payments made to shareholders from a firm's profits are called

Group of answer choices

owner subsidies

dividends

retained earnings

coupon payments

7-All of the following will cause a shift in the demand curve for capital EXCEPT:

Group of answer choices

A change in sales expectations.

the interest rate.

changes in labor prices.

technological change.

8-A resource whose services can be consumed without reducing the stock of the resourceis is a(n):

Group of answer choices

renewable naural resource

exhaustible natural resource

independent resource

unknown resource

9-Assume that Spain can produce a commodity using fewer resources than any other country. Based on a one way trade, Spain will export this commodity even if other countries have a lower opportunity cost of producing it.

Group of answer choices

True

False

10-Table 16-1

The Table reflects the Number of workers needed to

produce one unit of each of the following goods.

Goods	Number of Korea	Workers Colombia
1 Radio	3	4
1 Calculator	6	2

What can be said regarding absolute advantage in production for the two countries shown in Table 16-1?

Group of answer choices

Colombia has an absolute advantage in producing both calculators and radios.

Korea has an absolute advantage in producing both radios and calculators.

Neither country has an absolute advantage in producing radios.

Colombia has an absolute advantage only in producing calculators.