The Equilibrium Price of Capital

question 59

Multiple Choice

The equilibrium price of capital

• A)is not affected by a government subsidy on the rental of capital by firms.
• B)decreases if the government subsidizes the rental of capital by firms because the demand curve for capital shifts to the left.
• C)increases if the government subsidizes the rental of capital by firms because the demand curve for capital shifts to the right.
• D)increases if the government subsidizes the rental of capital by firms because the supply curve for capital shifts to the left.
• E)decreases if the government subsidizes the rental of capital by firms because the supply curve for capital shifts to the right.

Understand the distinction between active and passive voice and their appropriate use in business writing.

Recognize the significance of concrete and abstract words in conveying clear messages.

Learn the principles of effective paragraph development and emphasis placement in business messages.

Understand the importance of credibility and authenticity in business communication.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Psychological Tension

A state of mental or emotional strain, often resulting from challenging or demanding circumstances.

Attributions

Explanations that individuals create for the causes of their own and others' behaviors and events.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underestimating the influence of situational factors.