Economists assume that most individuals act as if they are motivated by self-interest and respond in predictable ways to changing circumstances
a. True
b. False
Indicate whether the statement is true or false
True
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What are the conditions that characterize the sellers' side in a perfectly competitive market?
What will be an ideal response?
Portfolio investment and foreign direct investment are methods through which
A) ownership in assets are acquired in countries other than one's home country. B) U.S. residents invest funds in companies that export goods. C) U.S. residents invest funds in companies that import goods. D) short-term investments are converted to long-term ones.
Consider someone who borrows $10,000 to buy a car at a fixed interest rate of 9%. If inflation is 3% at the time the loan is made, what is the real interest rate at which the loan must be repaid, and to what level would the interest rate have to rise for the real interest rate on the loan to be zero?
a. 4.5%; 7.5% b. 6; 9% c. 8%; 10% d. 6; 12%
Throughout history, governments have used price controls to
a. protect buyers. b. protect sellers. c. serve the "public interest." d. All of the above are correct.