Question
Please help me answer the following : (please provide explanation or reference) 5.The marginal revenue product of capital is the : a. change in a
Please help me answer the following : (please provide explanation or reference)
5.The marginal revenue product of capital is the :
a. change in a company's balance sheet when it acquires new plant
b. additional value of output from using more capital
c. change in a company's share price
d. changing value of the capital stock
6.Part of the sensitivity of current consumption to current income changes arises from:
a. people's inability to borrow when their current income decreases.
b. the fact that people may not believe an announcement that the government will lower taxes.
c. the fact that people are not as forward looking as the permanent income theory suggests.
d. all of the above.
7.A person who wins $10,000 from in a lottery, is LEAST likely to do which of the following?
a. take a trip around the world
b. deposit $5,000 in a savings account and invest $5,000 in mutual funds
c. use it for a down payment on a house
d. buy some Microsoft stocks
8.The fact that the lure of 0% financing by U.S. car manufacturers in 2001 resulted in record sales of U.S. cars is an indication that:
a. the consumption of durable goods is not as variable as the consumption of non-durable goods.
b. The consumption of durable goods is mostly determined by random events.
c. the permanent-income theory of consumption has no validity.
d. the theory of durable consumption goods is really a theory of investment applied to households.
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