Which of the following statements is correct?
a. The market for capital is unlike the market for labor because the rental price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
b. The market for capital is unlike the market for labor because the purchase price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
c. The market for capital is like the market for labor because the rental price of capital is affected by the marginal product of capital, and the price of labor is affected by the marginal product of labor.
d. Both a and b are correct.
c
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In an imaginary economy, consumers buy only razors and cologne. The fixed basket consists of 6 razors and 4 bottles of cologne. A razor cost $20 in 2009 and $25 in 2010 . A bottle of cologne cost $30 in 2009 and $40 in 2010 . Using 2009 as the base year, which of the following statements is correct?
a. For the typical consumer, the number of dollars spent on razors is equal to the number of dollars spent on cologne in each of the two years. b. The consumer price index is 310 in 2010. c. The rate of inflation is 29.17% in 2010. d. None of the above is correct.
(Consider This) According to the Consider This box on catfish and art, which of the following airlines in 2007 agreed to pay $300 million in fines for fixing fuel surcharges on passenger tickets and cargo?
A. Korean Air and British Airlines. B. Qantas and Lufthansa. C. United Airlines and American Airlines. D. Virgin Atlantic and Aeroflot.