A. higher interest rates
B. lower expected future profits
C. more expensive capital goods
D. All of the above
Related Mcqs:
- Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A - If the price elasticity of demand is unit then a fall in price ?
A. Reduces revenue
B. Leaves revenue unchanged
C. Increase revenue
D. Reduces costs - A fall in demand for labour is likely to lead to ?
A. A lower equilibrium wage and lower quantity of labour
B. A lower equilibrium wage and higher quantity of labour
C. A higher equilibrium wage and higher quantity of labour
D. A higher equilibrium wage and lower quantity of labour - If people are made unemployed because of a fall in aggregate demand this is known as ?
A. Frictional unemployment
B. Seasonal unemployment
C. Cyclical unemployment
D. Structural unemployment - Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?
A. 1.4
B. 0.66
C. 0.75
D. 2.0 - If the investment demand curve is vertical ?
A. both monetary and fiscal policy are ineffective
B. monetary policy is effective but fiscal policy is ineffective
C. monetary policy is ineffective but fiscal policy is effective
D. both monetary and fiscal policy are effective - How is termed the balance of investment and return; in which investment and return are exactly equal ?
A. Break even
B. Breakeven point
C. Both of them
D. None of them - Investment funds are established for the supports of institutions such as hospitals investment is called ?
A. Charity funds
B. Attached funds
C. Endowment funds
D. Investment fund - The difference between goes investment and net investment is ?
A. Depreciation
B. Acceleration
C. Declaration
D. Capital investment - The accelerator theory of investment says that induced investment is determined by ?
A. the level of national income
B. the level of aggregate demand
C. the rate of change of national income
D. expectations
