User cost is equal to ________
A) interest cost plus the expected rate of change in the real price of capital plus depreciation
B) interest cost minus the rate of depreciation
C) interest cost minus the expected rate of change of the real price of capital plus depreciation
D) interest cost plus depreciation
C
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As the price of a resource (e.g., labor) decreases,
a. demand for that resource increases b. the quantity demanded of that resource decreases c. the supply of that resource increases d. producers are more willing and able to hire that resource e. producers are less willing and able to hire that resource
The net present value of $1,000 received at a time in the future would
a. decline if the $1,000 were received sooner. b. increase if the delivery date for the $1,000 were set farther into the future. c. increase if the interest rate rose. d. increase if the interest rate fell.