Multiple Choice
-In Exhibit Q-2, if price of the good is $5, the price of a unit of the physical capital used inproduction (shown in column 1) is $700, and the interest rate of loanable funds is 10percent, the quantity demanded of physical capital is
A) 2 units
B) 3 units
C) 4 units
D) 5 units
E) 6 units
Correct Answer:

Verified
Correct Answer:
Verified
Q73: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10702/.jpg" alt=" -In Exhibit Q-1,
Q74: Money that a firm uses to buy
Q75: Use the concept of location rent to
Q76: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10702/.jpg" alt=" -In Exhibit Q-2,
Q77: If the interest rate on the loanable
Q79: Rent is what entrepreneurs earn, but it
Q80: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10702/.jpg" alt=" -In Exhibit Q-7,
Q81: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10702/.jpg" alt=" -In Exhibit Q-4,
Q82: Farm programs that guarantee a price higher
Q83: If the rate of interest increases, the