A the beginning of 2012, you pay $100 for a share of stock that then pays you a dividend of $1 at the beginning of 2013. If the stock price rises from $100 to $109 per share over the year, then you have earned an annual rate of return of
A) 5 percent.
B) 1 percent.
C) 9 percent.
D) 4 percent.
E) 10 percent.
E
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In the figure above, the marginal rate of substitution (MRS) at point A is
A) greater than the MRS at any other point on the indifference curve. B) equals the MRS at all other points on the indifference curve. C) less than the MRS at any other point on the indifference curve. D) equal to the slope of the budget line.
If the Fed wants to fight unemployment, it would ______________
Fill in the blank(s) with the appropriate word.
If all resources were perfectly adaptable for alternative uses, the production possibilities curve would
A) be bowed out. B) be a loop. C) be a straight line. D) not exist.
According to the Keynesian approach, an increase in taxes
A. will reduce consumption by an amount less than the change in taxes. B. will reduce consumption exactly by the amount of the taxes. C. will increase consumption, as the government will spend the extra tax revenue and that increases consumption. D. will not impact consumption, as most consumption is autonomous.