Suppose That a Machine Costs $10,000 in Constant Dollars and the Real

question 43

Multiple Choice

Suppose that a machine costs $10,000 in constant dollars and the real rate of interest is 12 percent.If the machine is expected to increase in price by 2 percent and the rate of depreciation is 5 percent,then the user cost of capital for that machine over one year is equal to ________.

• A)$150
• B)$1,500
• C)$10,000
• D)$102,500

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Definitions:

Overcorrection

A behavioral intervention strategy involving the replacement of inappropriate behaviors with more appropriate ones through practice or restitution.

Response Cost

A behavior modification technique that involves the removal of a positive reinforcer following the occurrence of an undesirable behavior.

Classroom

A room or environment where teaching and learning activities are conducted.

Response Cost

A behavior modification technique that involves the loss of a privilege or desired item as a consequence for undesirable behavior.