Explain why a computer might depreciate rapidly just in one year even if it is in just as good of a condition as the day it was purchased?
What will be an ideal response?
The reason is that newer, faster and more capable computers are being manufactured at a fairly rapid pace. This serves to make older computers more obsolete even more quickly than they otherwise would.
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The relationship between consumption and disposable income is such that as
A. consumption rises, disposable income falls. B. disposable income rises, consumption rises. C. disposable income rises, consumption falls. D. disposable income rises, saving falls.
Refer to the accompanying figure. At a price of $3, there will be:
A. an excess supply of 2 units. B. an excess supply of 7 units. C. an excess demand of 7 units. D. an excess demand of 5 units.
To satisfy the admission criteria to the European Union, a country must meet all of the following, EXCEPT:
A) maintain an inflation that is equal to the average of the three lowest rates. B) maintain long-term interest rates equal to that of the three countries with the lowest inflation rates. C) maintain a pegged exchange rate, without any revision for two years. D) cut down taxes to the lowest possible level.
When the price is $2
A. quantity supplied is greater than quantity demanded and, therefore, price must rise to get to equilibrium.
B. quantity supplied is less than quantity demanded and, therefore, price must fall to get to equilibrium.
C. quantity demanded is greater than quantity supplied and, therefore, price must rise to get to equilibrium.
D. quantity demanded is greater than quantity supplied and, therefore, price must fall to get to equilibrium.