Different capital intensity in different industries is mainly explained by _______ and ________?

A. Wage differentials, skill levels
B. Technology, the ease of factor substitution
C. Government grants, international competition
D. Patents, skill shortages

If workers get a real wage increase this will likely ____ and _____?

A. Encourage the use of more capital in the long run, reduce demand for all inputs
B. Encourage the use of more capital increase demand for all inputs
C. Encourage the use of less capital reduce demand for all inputs
D. Encourage the use of less capital, reduce demand for all inputs

The value of an asset depends upon ?

A. Its scrap values
B. Its depreciation
C. The present value of the future stream of income it can earn
D. The cost of loans

The difference between gross investment and net investment is ?

A. Depreciation of the existing capital stock
B. Productive investment
C. Dwellings
D. Inventories

Involuntary unemployment exists if workers ?

A. Will not work at the offered wage
B. Would work at the going wage but can’t find jobs
C. Will not work because the hours are anti-social
D. Are not prepared to move house to get the job

By restricting labor supply a trade union can _____ and _______?

A. Increase the wage, increase employment
B. Maintain the wage, increase employment
C. Increase the wage, lower employment
D. Maintain the wage, lower employment

the cost of using capital services is the ?

A. Wage rate of capital
B. Interest charges
C. Marginal capital cost
D. Rental rate for capital

The marginal revenue product of capital is the ?

A. Change in a company’s balance sheet when it acquires new plant
B. Additional value of output from using more capital
C. Change in company’s share price
D. Changing value of the capital stock

In the short run, the supply of capital is ________ and in the long run will depend on _______?

A. Variable, technology
B. Fixed, expectations
C. Fixed, rental rate of capital
D. Variable, interest rates

Land will be allocated between competing uses so that ?

A. Housing gets priority
B. Industry gets priority
C. Farming gets priority
D. The equilibrium rental rate equilibrium total demand with supply