This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent ... (Read 120 times)

rl

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent result ________.
 
  A) a decline in the MPK
  B) a decline in the real rental price of capital
  C) a decline in stock prices
  D) all of the above
  E) none of the above

Question 2

Equilibrium market prices for capital and labor are 10 and 8, respectively. Then, the economy experiences one or more supply shocks, so that the marginal product of capital is 9, and the marginal product of labor is 6.
 
  Assuming that the available quantities of capital and labor are fixed, which of the following is (are) likely to decrease as the economy approaches its new equilibrium? A) economic profits
  B) real rental price of capital
  C) total output
  D) the quantity of capital in use
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

briseldagonzales

  • Sr. Member
  • ****
  • Posts: 303
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


rl

  • Hero Member
  • *****
  • Posts: 579
Reply #2 on: Jun 30, 2018
Thank you :)


briseldagonzales

  • Sr. Member
  • ****
  • Posts: 303
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

View from the Phoenix lander, 2008 View from the Phoenix lander, 2008
Schematic of the Earth–Moon system (without a consistent scale) Schematic of the Earth–Moon system (without a consistent scale)
Taken by Hinode's Solar Optical Telescope on January 12, 2007, this image of the Sun reveals th Taken by Hinode's Solar Optical Telescope on January 12, 2007, this image of the Sun reveals th
After the Eruption of Mount St. Helens in 1980 After the Eruption of Mount St. Helens in 1980
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
Share of Hours Worked by Education Level, 1940–2008 Share of Hours Worked by Education Level, 1940–2008
Video: Hormonal regulation of blood pressure - RAA system

For a complete list of videos, visit our video library