Refer to Figure 16.1. An increase in expected output in the future is best represented by a movement from

Which of the following items are considered physical capital?

I. shares of Ford stock traded on the New York Stock Exchange II. the Taco Bell store nearest you III. the rental cars owned by Hertz Rental-A-Car IV. the salaries paid to Intel executives A) II and III B) I and IV C) I, II and III D) I, II and IV

Suppose that the United States imposes a tariff of $500 per car on Japanese cars. The most likely effect will be to increase the price of cars in the United States by:

A) less than $500 per car, and decrease the price of cars in Japan by less than $500 per car. B) $500 per car. C) more than $500 per car. D) less than $500 per car without affecting the price of cars in Japan.