The risk-free rate is not:
A. usually approximated by interest rates on U.S. government debt.
B. the interest rate at which one would lend if there were no risk of default.
C. lower than any other interest rate.
D. usually approximated by interest rate on corporation debts.
D. usually approximated by interest rate on corporation debts.
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How does the imposition of a penalty for selling an illegal drug influence demand, supply, price, and the quantity of the drug consumed?
What will be an ideal response?
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. Which of the following gives Alice's best response function?
A. QA = 200 - 0.01QA B. QA = 100 - 0.005QK C. QA = 2,000 - 0.5QK D. QA = 2,000 - 0.5QA
The concept of diminishing marginal utility:
A. explains why individuals rarely maximize their total utility. B. is the change in total utility that comes from consuming one additional unit of a good or service. C. is the principle that the additional utility gained from consuming successive units of a good or service tends to be smaller than the utility gained from the previous unit. D. is the principle that the additional utility gained from consuming different bundles of goods and services tend to be smaller than the utility gained from consuming just one bundle of goods and services.
Which of the following is not held constant in a demand schedule?
a. income b. tastes c. price d. expectations