What is the present value of $1 that will be paid to you in 5 years if the interest rate is 7%? Work it out to the nearest tenth of a cent.
What will be an ideal response?
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The Keynesian theory is consistent with the business cycle fact that inflation is
A) procyclical and leading. B) procyclical and lagging. C) countercyclical and leading. D) countercyclical and lagging.
The idea that every Pareto efficient allocation is the competitive equilibrium for some initial allocation of resources is known as:
A. the first welfare theorem. B. the second welfare theorem. C. the third welfare theorem. D. the exchange efficiency condition.
If a monopolist's marginal revenue exceeds its marginal cost at its current level of output, then to maximize its profit the monopolist should:
A. do nothing. B. increase output until price equals marginal cost. C. decrease output in order to increase the gap between marginal revenue and marginal cost. D. increase output until marginal revenue equals marginal cost.
"If an industry's minimum efficient scale is between 2,000 and 4,000 units of output, then a firm producing 2,000 units of output in that industry has a cost-saving advantage over another firm producing 4,000 units of output in the same industry." Do you
agree or disagree? Explain. What will be an ideal response?