True or False? Always justify your answer, it is more important than getting It right If the marginal rate on return on capital increases, then investments become more costly for firms. The firms lower their amount of desired capital and this lead in equilibrium to lower investment.

Q: Assume that an economy is based on two industrial sectors, agriculture (A) and energy (E). The…

A: Answer: Given, M=0.40.40.40.4D=43 I-M=1001-0.40.40.40.4I-M=0.6-0.4-0.40.6The formula of (I-M)-1 is…

Q: are

A: Conservatism is a social and political philosophy which promotes traditional social institutions.The…

Q: determine the value of the firm

A:

Q: The rate of return on any investment includes which of the following: current income earned…

A: Current income is liable for rate of return and also capital gains.Investment is made and return is…

Q: In the economic sense, capital does not include: Response option group a) Buildings. b) Machines. c)…

A: Goods that are used in the production of final goods, goods which stimulate production of final…

Q: If the marginal product of capital is lower than the cost of capital, then a. the value of q is…

A: The increase in total production when there is an additional labor unit being added and all other…

Q: Why can the Sunk costs-past costs not be changed by any future investment?

A: Sunk costs are those costs which cannot be recovered after paying.

Q: of the following will cause a shift in the demand curve for capital EXCEPT:     A change in sales…

A: Demand Curve For Capital: The curve that shows the negative relationship between the interest rate…

Q: John and Peter are two representative consumers/investors who maximize the utility of consumption.…

A: Firstly we write the budget Constraints of John and Peter in terms of present value : Let the…

Q: Mark, a U.S. citizen, buys stock in a British Shipping company.  In macroeconomics language, this…

A: Exchange rates of a currency can be fixed or floating. Fixed exchange rate is computed by the…

Q: "Capital is a flow and income is a stock" True/False

A: # If a quantity is being measured at a perticular point of time then it is stock and if a quantity…

Q: Why Do Firms Choose Acquisition Versus Greenfield Investments?

A: Acquisition and Greenfield Investments are the two ways in which a company can enter into a foreign…

Q: Identify the term being referred to: A theory that states that dividends should follow the stage of…

A: Answer-

Q: Which of the following is an example of a “Natural Asset”?   Question 22 options:   The Millions…

A: Natural assets are resources that exist without any human intervention. These assets are part of…

Q: Investment decisions cannot be affected by Select one: a. Expected rate of return b. Interest rate…

A: In Economics, Investment is considered as an injection into the economy to boost up the economic…

Q: Find the value of marginal efficiency of capital if the prospective yield is 781 and the supply…

A: Generally in the given question The value of prospective yield = 781 The value of supply price = 362…

Q: A drug company is deciding how much to invest in Research and Development into finding a cure for…

A: Below is the given values: Given the social return = 4% Minimum return = 5%

Q: True, False, or Uncertain? Give rationale to your answers. Provide graphs. Capital in all sectors…

A: A Tax is forced on the capital in the manufacturing sector, the capital in every one of the sectors…

Q: Your firm is offered an investment, as follows: If you pay $1 million today, then you will receive…

A: We use Net Present Value (NPV) to answer this question. NPV is the sum of initial investment and the…

Q: although finished goods are scarce, the inputs to produce them are not scarce. true false

A: although finished goods are scarce, the inputs to produce them are not scarce.

Q: In a Heckscher-Ohlin model, if capital-owners are relatively better off, then it is consistent with…

A: According to H-O(Heckscher-Ohlin) model, the country should export those commodities which require…

Q: In an efficient market, investors can consistently make high returns since it is easier to estimate…

A: When talking about market efficiency, it explains the ability of a market to work freely and to…

Q: Which of the following would lead to an increase in an individual's wealth? i. a person makes the…

A: Net worth is the difference between the value of what you tend to own including house, checking…

Q: Which of the following could plausibly cause a rightward shift in the marginal efficiency of capital…

A: When talking about productivity of capital, it explains the efficiency of the production process to…

Q: Firms raise capital by:

A: The meaning of raising capital is the funds which investor or a lender gives for either starting a…

Q: True, False, or Uncertain? Give rationale to your answers. Provide graphs. Capital in all sectors…

A: Capital Deepening is defined as an increase in the proportion of the stock in capital to the number…

Q: State and analyze the accelerator theory of investment by Paul Samuelson?

A: The accelerator theory of investment by Paul Samuelson applies to the relationship between the…

Q: What is meant by diminishing returns to capital? Use a hypothetical example to support your answer

A: Answer to the question is as follows :

Q: Consider a worker who is offered a salary bonus of $2,000 for each of the next two years if he or…

A: Annual bonus for 2 years = 2000 $ Present cost = 3000 $ Time = 2 years

Q: Which of the following external sources of increasing capital stock has maximum political…

A: Here, correct options are to be identified.

Q: How does the cost of financial capital influence innovative research and development activities in a…

A: The answer is given below

Q: Which of the following would not be on the statement of cash flows? Group of answer choices ​Cash…

A: Cash flow statement: It is the financial statement that indicates the cash coming in and going out…

Q: Question 1 Suppose total benefits from producing Q outputs are given by TB = 12Q1/2, and total costs…

A: We are going to answer each part using economic concepts such as elasticity of demand, present worth…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: In a market, the profit or loss of existing firms influence the decision of new firms whether to…

Q: If a successful company consistently generate larger profits, it is a violation of efficient market…

A: The effective market hypothesis (EMH), on the other hand known as the productive market theory, is a…

Q: than 250 words

A: An opportunity for investment in any situation exists where there is an option of purchasing…

Q: A car used as a taxi is a capital good  True/False

A: First of all we must understand what are capital goods and what are consumption goods. The goods…

Q: Consider a company that can invest capital to generate revenue and assume that the marginal revenue…

A: Given;  MR1=2.25MR2=1.75MR3=1.40MR4=1.24MR5=1.17 Interest rate= 20%

Q: Among the given choices, which of these is the incorrect statement? a. Female education helps reduce…

A: Female education is an important aspect of the growth and development of the economy and society.…

Q: Most entrepreneurs do not have enough money of their own to start their businesses. When they…

A: When the entrepreneurs do not have funds to start their business, then they borrow from banks or…

Q: Indicate whether the statement is true or false, and justify your answer.The internal rate of return…

A: The internal rate of return is the expected future return of the potential investment. It is used in…

Q: Do you agree that capital is topmost factor under the category of resources? Why? Please explain and…

A: Answer - "Thank you for submitting the question.But, we are authorized to solve one question at a…

Q: What is the intuition behind the growth rate of non-traded goods consumption as a function of…

A: An improvement in the country's terms of trade in one country states that the non traded good can…

Q: Find the marginal efficiency of capital if the prospective yield is 291 and the supply price is 52.

A: Gradually supply price is denoted to be as that consecutive price which relates to the amount of the…