Extraction costs of a nonrenewable resource include the:
A. cost of removal from the ground only.
B. cost of removal from the ground plus the cost of preparation for sale.
C. cost of removal from the ground, the cost of preparation for sale, and the cost of not being
able to extract and sell the resource in the future.
D. cost of removal from the ground plus replanting costs.
Answer: B
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Ron weighs 150 pounds. A graph relating Ron's weight on the vertical axis to Nancy's consumption of ice cream on the horizontal axis would be
a. a horizontal line at weight = 150 b. a horizontal line at weight = 0 c. a positively sloped line with decreasing slope d. a vertical line at weight = 150 e. the origin
In the light of the infant industry argument, identify the industry which is likely to have substantially high initial costs
a. Fashion designing b. Retail industry c. Iron and steel industry d. Dairy industry e. Software industry
Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If the exchange rate changes to $1 equals 8 pesos, which of the following is TRUE?
A) The dollar depreciates and U.S. exports become cheaper. B) The dollar appreciates and U.S. exports become cheaper. C) The peso depreciates and imports from Mexico become cheaper. D) The peso appreciates and imports from Mexico become cheaper.
If the Fed decides to sell T-bills, it increases the supply of T-bills. How will this affect the price of T-bills and the interest rate?
A. T-bill prices fall and interest rates fall. B. T-bill prices rise and interest rates rise. C. T-bill prices rise and interest rates fall. D. T-bill prices fall and interest rates rise.