In Equilibrium, Other Things Being Equal, All of the Following

question 88

Multiple Choice

In equilibrium, other things being equal, all of the following changes will increase the real rental price of capital except:

• A)a lower quantity of labour employed.
• B)a lower stock of capital.
• C)better technology.
• D)a higher labour-capital ratio.

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Definitions:

British Pound

The British Pound, formally the pound sterling, is the currency of the United Kingdom, and one of the world's major currencies, traded extensively in the global foreign exchange markets.

Mexican Peso

The official currency of Mexico, symbolized as $ or MXN.

Direct Investment

In international business, building facilities in another country.

Significant Facilities

Important physical buildings, plants, or other structures owned or used by a business to carry out its operations.