If the annual return on a property is $30,000, and the interest rate is 20 percent, the present value is $6,000
Indicate whether the statement is true or false
F
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When the economy is in long-run equilibrium, the price level adjusts so as to equate which two values with one another?
A) total planned real expenditures and total planned production B) government spending and tax revenues C) the inflation rate and the unemployment rate D) import and export spending
Marginal revenue product is the
A. additional revenue from one additional dollar increase in price. B. change in the revenue product resulting from one additional unit of input. C. additional revenue from one additional unit of input. D. change in revenue resulting in one additional dollar in price.
When does a firm get a normal return on the use of its resources?
a. at high economic profits in the short run b. at high economic profits in the long run c. at zero economic profits in the short run d. at zero economic profits in the long run
Suppose you buy a house for $250,000. One year later, the market price for the house has fallen to $200,000. What is the return on your investment in the house if you made a down payment of 10 percent and took out a mortgage loan for the other 90 percent?
What will be an ideal response?