You have made an investment of $250 that will yield a profit of $30 in one year. If the interest rate is 11.5% is this a good investment?
A. Yes, because the internal rate of return is greater than the interest rate
B. Yes, because the interest rate is greater than the internal rate of return
C. No, because the internal rate of return is greater than the interest rate
D. No, because the interest rate is greater than the internal rate of return
A. Yes, because the internal rate of return is greater than the interest rate
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The figure above represents the competitive market for slices of key lime pie. When the price is $3, the total producer surplus equals
A) $0. B) $60. C) $90. D) $120. E) None of the above answers is correct.
Louise Bakery sells cupcakes that have an equilibrium price of $5.00 per cupcake and an equilibrium output of 300 cupcakes. Which of the following is likely to be true when the government imposes a tax of $0.75 per cupcake? a. Producer and consumer surplus will increase. b. Producer and consumer surplus will decline. c. Equilibrium price will decrease
d. Equilibrium output will increase.
Which of the following will shift the consumption function upward?
A. an increase in consumer wealth B. an increase in disposable income C. an increase in personal income taxes D. a decrease in the MPC
The owners of a corporation are
A) the employees of the firm. B) the shareholders. C) completely in control of the firm. D) taxed only once.