Assume a firm is a monopoly and enjoys $10,000,000 profits per year. The firm lobbies to have a moratorium passed by Congress on new firms in its market for the next 25 years
If there is no discount rate, how much would any firm(s) arguing against the moratorium be willing to spend to block it? A) something less than $250 million
B) $250 million
C) $251 million
D) $250 billion
A
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If the capital—labor ratio is above the Golden Rule capital—labor ratio, then in the steady state,
A) capital per worker is above its maximum. B) output per worker is less than it would be at the Golden Rule capital—labor ratio. C) investment per worker exceeds output per worker. D) consumption per worker is not at its maximum.
If the marginal propensity to save (MPS) = 0.1, then
A) the MPC = 0.9. B) the APS = 0.1. C) the APC = 0.9. D) consumption equals $1,800 when income equals $2,000.
The value of R2 always _____.
A. lies below 0 B. lies above 1 C. lies between 0 and 1 D. lies between 1 and 1.5
Assume you pay a premium of $0.50/bu for a put option with a strike price of $4.00/bu and that the current futures price is $3.75/bu. Then, the option is:
A. In-the-money B. At-the-money C. Out-of-the-money D. None of the above