When the price of a financial asset ________ its interest rate will ________
A) rises; remain the same B) falls; rise
C) falls; fall D) rises; rise
B
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A country is categorized as a low-income economy by the World Bank if its per capita income is below:
a. $1,000. b. $100. c. $10,000. d. $50. e. $5,000.
After September 11, 2001, President George W. Bush believed in the need for a fiscal stimulus. The proper fiscal policy to reflect this could include a(n)
a. increase in taxes. b. reduction in transfer payments. c. increase in government purchases. d. All of the above are correct.
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If MR = $9, then in the long run
A. new firms will enter the industry and the current firms will expand production. B. the firm will exit the industry. C. the firm will shut down. D. None of the above is correct.
Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. If Fun Cable Company were to be awarded the exclusive right to provide cable service in Stratospheria,
how many households would it service? A. 2,500 B. 2,750 C. 5,500 D. 5,000