Which of the following may not be indicated by low long-term interest rates?
(A) That the economy is expected to contract in coming years.
(B) That consumers want to borrow money to invest.
(C) The future health of the economy.
(D) That businesses do not want to borrow money to invest.
Ans: (B) That consumers want to borrow money to invest.
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The price of electricity consumption increased in a country. Since electricity is used for the production of various goods and services, this will lead to a ________, assuming all else equal
A) rightward shift of the labor demand curves of firms B) upward movement along the labor demand curves of firms C) leftward shift of the labor demand curves of firms D) downward movement along the labor demand curves of firms
For a perfectly competitive syrup producer whose average total cost curve does not change, an economic profit could turn into an economic loss if the
A) market demand for syrup decreases. B) marginal cost curve shifts downward. C) market demand for syrup does not change. D) market demand for syrup increases. E) price of syrup rises.
c. They save consumers time and mental processing power.
a. irrational b. lack of c. marginal d. total
If the annual interest rate is i, the present value of $X to be received at the end of each future year forever is:
a. $X/(1 + i) b. $X/i c. $X/(1 + i) n d. $X/i n e. $X n /i n