The price of a new textbook is $60 in one year and $75 two years later, while the price of a used copy of the textbook increased from $25 to $37.50. The relative price of a new textbook
A) increased by 25 percent.
B) increased from 2.4 to 3.
C) decreased from 2.4 to 2.0.
D) decreased from 1.4 to 1.25
C
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Refer to Table 2-15. Which of the following statements is true?
A) Jack has a comparative advantage in lawn mowing and George in garden cultivating. B) Jack has a comparative advantage in garden cultivating and George in lawn mowing. C) George has a comparative advantage in both tasks. D) Jack has a comparative advantage in both tasks.
The Keynesian model does a sound job of explaining
a. many recessions and why cyclical unemployment rises and falls. b. many recessions but not why cyclical unemployment rises and falls. c. why cyclical unemployment rises and what causes inflation. d. what causes inflation and why cyclical unemployment rises and falls.
What are variable costs?
a. costs that change with the level of output b. costs that do not change when output rises c. costs that rise when output decreases d. costs that do not affect long-run average total cost
The greater the risk of nonrepayment of a loan, other things being equal
A) the longer is the repayment term. B) the lower is the charged loan fees. C) the higher is the rate of interest. D) the smaller is the amount of collateral that is used.