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.

---

Definitions:

Evolutionary Psychologists

Researchers who study how evolutionary principles explain psychological processes and behaviors.

Natural Selection

Natural selection is the process by which organisms better adapted to their environment tend to survive and produce more offspring, a central concept of Charles Darwin's theory of evolution.

Cognitive Mechanisms

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Physically Attractive

A characteristic of an individual that is found to be visually appealing to others, often influenced by cultural standards and biological instincts.