The nation's stock of capital can increase only when net new investment takes place.

a. Trueb. False

If the income effect of a change in the wage dominates the substitution effect, then workers will want to work more when the wage increases.

a. Trueb. False

Marginal land is on the borderline of being used in production.

a. Trueb. False

MRP represents what the marginal physical product is worth.

a. Trueb. False

The difference in values between money today and money in the future is lower when the rate of interest is higher.

a. Trueb. False

Spending on an education is considered an investment because it involves a sacrifice of current income for higher expected future income.

a. Trueb. False

Anything that influences a good's price or the marginal physical product of labor will influence wages.

a. Trueb. False

The demand for labor is a derived demand.

a. Trueb. False

The quantity demanded of an input normally rises as its price rises.

a. Trueb. False

The demand curve for any input is the MP curve.

a. Trueb. False

A usury rate is like a price ceiling.

a. Trueb. False

The marginal revenue product is the extra revenue the firm receives by selling one more unit of output.

a. Trueb. False

The substitution effect is thought to dominate the behavior of low-wage workers.

a. Trueb. False

Economic rent is paid only to land, and not to other resources.

a. Trueb. False

If the supply curve remains constant, an outward shift in the demand curve for a commodity causes the price of factors used in its production to decline.

a. Trueb. False