Question :
19.3 Capital and Natural Resource Markets
1) Other things remaining the : 1238898
19.3 Capital and Natural Resource Markets
1) Other things remaining the same, the
A) higher the rental rate of capital, the greater the quantity of capital demanded.
B) lower the rental rate of capital, the smaller the quantity of capital demanded.
C) higher the rental rate of capital, the smaller the quantity of capital demanded.
D) rental rate of capital and the quantity of capital demanded are not related.
E) higher the rental rate of capital, the more the demand for capital decreases.
2) When the rental rate for capital falls, the ________ capital ________.
A) demand for; increases
B) demand for; decreases
C) quantity demanded of; increases
D) quantity demanded of; decreases
E) supply of; increases
3) An increase in the rental rate of capital ________ the quantity of capital demanded and ________ the quantity of capital supplied.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; does not change
4) A technological change that raises the value of marginal product of capital ________ the rental rate for capital because the ________.
A) raises; supply curve of capital shifts leftward
B) lowers; supply curve of capital shifts rightward
C) raises; demand curve for capital shifts leftward
D) raises; demand curve for capital shifts rightward
E) lowers; demand curve for capital shifts leftward
5) Which of the following is true about the market for capital?
A) The demand for capital curve is upward sloping and the supply of capital curve is downward sloping.
B) The supply of capital is perfectly elastic.
C) The supply of capital curve is upward sloping and the demand for capital curve is downward sloping.
D) The supply of capital curve is vertical and the demand for capital curve is downward sloping.
E) None of the above answers is correct.
6) Land
A) is a nonrenewable resource.
B) has an elastic supply but not perfectly elastic.
C) is the only factor of production that is not traded in a market.
D) has a perfectly inelastic supply.
E) has a perfectly elastic supply.
7) Which of the following is a renewable resource?
i.a forest of pine trees grown by Georgia-Pacific
ii.oil reserves in Saudi Arabia
iii.the Everglades
A) i and ii
B) ii and iii
C) i and iii
D) i, ii, and iii
E) i only
8) Considered as a factor of production, coal is a
A) form of physical capital.
B) type of embodied labor.
C) nonrenewable natural resource.
D) renewable natural resource.
E) form of financial capital.
9) The rental rate of land is the payment for the resource land. The lower the rental rate, the greater the
A) demand for land.
B) quantity demanded of land.
C) supply of land.
D) elasticity of supply for land.
E) quantity supplied of land.
10) If the supply of a factor is perfectly inelastic, then
A) no more than the existing quantity can be supplied.
B) the supply curve is horizontal.
C) sellers will provide whatever quantity is demanded at the going price.
D) a rise in price results in no quantity being supplied.
E) a fall in price results in no quantity being supplied.
