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

question 99

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

---

Definitions:

Freight Charges

The cost associated with transporting goods from one place to another, paid by the shipper or receiver.

Asset Turnover

A metric that evaluates how effectively a company utilizes its assets to produce sales income.

Intangible Asset

An asset that lacks physical substance but provides economic benefits to a business, such as trademarks or patents.

Commercial Substance

A consideration in accounting that a transaction has significantly changed the economic circumstances of the participants.