Farm programs that guarantee a price higher than equilibrium 

a. cause shortages 

b. decrease government spending 

c. decrease taxes 

d. raise farm property values 

e. increase suburban development

2. The MRP of capital is measured by the change in

a. total output/change in loanable funds 

b. marginal physical product/change in loanable funds   

c. total revenue/change in loanable funds 

d. loanable funds/change in total revenue

e.   total output/change in total capital

3. Considering capital, marginal factor cost is defined as the

a. extra output produced by employing one more unit of capital (or loanable funds)

b. extra total cost attributed to employing one more unit of capital (or loanable funds)

c. contribution of capital (or loanable funds) to the final product

d. change in capital (or loanable funds) required to produce one more unit of outpute. change in total revenue contributed by an extra unit of capital (or loanable funds)

4. 19. If the rate at which one can borrow loanable funds is fixed at 8 percent, the margin a factor cost of employing 8 units of loanable funds is  

a. zero  

b. 64 percent 

c. 8 percent

d. 1 percent  

e. unable to determine with this information

5. Farm programs that guarantee a price higher than equilibrium

a. cause shortages

b. decrease government spending

c. decrease taxes

d. raise farm property values

e. increase suburban development…

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