Which of the Following Will Occur When the Capital Stock

question 12

Multiple Choice

Which of the following will occur when the capital stock falls?

• A)profit per unit of capital will increase
• B)profit per unit of capital will decrease
• C)there will be no change in profit per unit of capital
• D)there will be an ambiguous effect on profit per unit of capital
• E) none of the above

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Definitions:

Rate of Unemployment

The percentage of the labor force that is jobless and actively seeking employment.

Normative Economic Statement

A statement that reflects opinions or judgments about what ought to be in economics, focusing on the desirability of certain economic policies or outcomes.

Minimum Wage

The lowest legal wage that employers are allowed to pay their workers, set by law to ensure a minimum standard of living for employees.

Federal Government

The national government of a federated state, which holds the central political authority in a federal system.