Induced investment is made with the intent of producing a substantial output. a. producing a substantial output. b. marginal efficiency of capital with the rate of interest c. to meet the equilibrium of demand
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- How does rising organic composition of capital threaten the rate of profit?The interest rate earned on an investment in an asset is called Group of answer choices a. The capital output ratio. b. The rate of return. c. The risk quotient. d. Capitalization. e. Depreciation.Economic depreciation is the A. change in the market value of capital over a given period. B. forgone return on the funds used to buy capital. C. return that an entrepreneur can expect to receive on average. D. firm's opportunity cost of using its own capital.
- Question 2 Lamya has initial investment of SR45, 000. If it were to be invested on stocks, the market interest rate would be 0.12 (12%).However, the industry uses capital and labor as inputs and sells 2, 800 belts per month at SR25 market price. If the cost of the machine that produces the belts is SR 30,000 and labor cost is 20,000. Calculate the following: a. Total revenue. b. Opportunity cost of capital c. Economic profit d. Accounting profit e. From your answer in (c), is the business profitable from the economic profit point of view? Explain your answer. Question 3 The table below gives some data on the population of Crescent Highland. Use the provided information to fill the table. YEARS 1 2 3 4 5 6 7 Population: 16 Years Older or Over (Millions) LabourForce (Millions) Employed (Millions) Unemployed (Millions)…4. Profit Maximization. Assume that the output price p, wage rate w, and rate of return to capital rare exogenous. Suppose further that output q is produced using inputs of labor I and capital k. Technology is represented by q = f(1,k); where fi, fx > 0. fu fkk 0. ; and ək Əl Find aw'ar fufkk-fi >016. Oman is using capital - intensive methods of production. This statement is related to _____. a. How to produce these goods? b. What goods to produce? c. Where to produce? d. For whom to produce?
- The demand curve for capital Oa. is derived from households' decisions concerning saving and spending. Ob. is horizontal. Oc. is vertical. Od. reflects the marginal productivity of capital.QUESTION 4 Which of the following is a capital resource? O A. A computer B. Silicon (sand) used to make C.A piece of software used by a firm D.A corporate bond issued by a computer programmer computer chips manufacturerWhich of the following terms is associated with giving up the chance to earn a return on investment funds? a. Opportunity cost b. Cost of capital c. Sunk cost d. Past cost.
- Economists typically assume that when making decisions, the owners of firms wish to maximize A. production efficiency B. short-term accounting profits. C. sales revenues. D. long-term economic profits.Which of the following is a capital (as opposed to land or labor) resource? A. A computer programmer B. A personal computer used by a software firm C. A corporate bond issued by a computer manufacturer D. Silicon (sand) used to make computer chipsIncreasing marginal returns occur Select one: a. As output increases at low levels of production b. Whenever total product increases at an increasing rate c. As output increases at high levels of production d. Through the entire range of production
