Question

In the market for a network good, the private demand curve lies to the right of the social demand curve.

Question 7 options:

	a) False
	b) True

Question 8 (1 point)

The easier it is to substitute capital for labor, the more elastic is the demand for labor.

Question 8 options:

	a) True
	b) False

Question 9 (1 point)

The demand for labor that arises from consumer demand for the firm's product and the productivity of labor is called:

Question 9 options:

	a) direct demand.
	b) secondary demand.
	c) primary demand.
	d) derived demand.

Question 10 (1 point)

In an agency shop, workers benefit from the presence of a union even if they are nonmembers.

Question 10 options:

	a) False
	b) True

The simplest means of acquiring financial capital, other than self-financing, is to issue stock shares.

Question 16 options:

	a) True
	b) False

Question 17 (1 point)

Firms must be guaranteed never to fail in order to achieve efficiency and innovation.

Question 17 options:

	a) True
	b) False

The formula used in the rate of return approach to determine whether an investment is worthwhile is the same formula used in the present value approach.

Question 19 options:

	a) True
	b) False

Question 20 (1 point)

The investment decisions made by firms involve comparing total costs with total benefits for each capital input.

Question 20 options:

	a) False
	b) True

Answer 1

7)

Answer: False statement.

Net goods have positive externalities, so social demand curve is located right of private good demand curve.

8)

Answer: True statement.

Demand for labor will be elastic, since if wage rate is increased, producer can easily increase the quantity of capital. Easy substitutability makes demand more elastic.

9)

Answer: ( D)

labor demand depends the demands of products which are produced by the labor. So it is called derived demand.

10 )

Answer: True Statement.

Even non-union members are entitled for same benefits as union members. Law does not discriminate between two types of workers.