Calculate the tax-adjusted user cost of capital of a machine that costs $10,000 and depreciates at a rate of 10%, when the real interest rate is 3% and the tax rate on revenue is 5%.

If the institutions in an economy change from being inclusive to extractive, then in the economy:

A) the returns to entrepreneurship will increase. B) the opportunity cost of entrepreneurship will decrease. C) the number of entrepreneurs will decrease. D) existing entrepreneurs will earn higher profits.

If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could

A) survey competitors and ask them what they think demand elasticity is for the product. B) not do anything as there is no way to find an elasticity value. C) change price a little bit and observe what happens to total revenue. D) talk to its customers.