the cost of using capital services is the ?

Related Mcqs:

1. When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

   A. greater than average cost, greater than average cost
   B. less than average cost, greater than average cost
   C. less than average cost, less than average cost
   D. greater than average cost, less than average cost

2. S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?

   A. S – I = X = M
   B. S + I = X + M
   C. S = I – (X+M)
   D. S-I = X/M

3. The sum of total income received for the services of labor, land or capital in a country is called?

   A. Gross domestic product
   B. National income
   C. Gross domestic income
   D. Gross national income

4. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

   A. At their lowest points
   B. When they are declining
   C. When they are increasing
   D. When marginal revenue is zero

5. When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?

   A. interest
   B. dividends
   C. increases in stocks of goods
   D. retained earnings

6. How I measured the change in the cost of basic goods and services in comparison with a fixed base period ?

   A. Human Development Index (HDI)
   B. Consumer Price Index (CPI)
   C. Complete Price Index (CPI)
   D. Comparative Price Index (CPI)

7. A graph showing all the combinations capital and labor available for a given total cost is the ?

   A. expenditure set
   B. isocost line.
   C. budget constraint
   D. isoquant

8. A country has a comparative advantage in the production of a product if the good’s _____ cost in different from the good’s _____ cost in another country ?

   A. resource; resource
   B. foreign exchange money
   C. opportunity; opportunity
   D. money; opportunity

9. The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?

   A. R&D generating welfare improved technology
   B. development of more productive machinery
   C. new work rules promoting workers efficiency
   D. lower wages extracted from workers

10. Market price adjusted to consider differences between social cost-benefit and private cost-benefit calculations are ?

    A. price distortions
    B. consumer surplus
    C. shadow prices
    D. exchange rates