If a perpetuity has a price of $500 and an annual interest payment of $25, the interest rate is
A) 2.5 percent.
B) 5 percent.
C) 7.5 percent.
D) 10 percent.
B
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If the Federal government expands its support of education and retraining of workers who have been unemployed for a relatively long length of time, which type of unemployment would the education and retraining most likely be targeted?
A) discouraged B) cyclical C) structural D) frictional E) government
To equalize traffic on transportation routes, a pricing arrangement called “peak, off-peak pricing” would most likely be proposed by
A. economists. B. politicians. C. regulators. D. the general public.
Stark Widgets produces 100 widgets per week at a price of $10 per widget. The manager decides to increase production to 10,000 widgets per week by assigning skillful workers. The average cost of production decreases with the increase in production. This implies that the firm experiences _____
a. privatization b. globalization c. economies of scale d. diseconomies of scale
Which of the following characteristics of the monopolistically competitive and the perfectly competitive market will cause the firm to earn zero profits in the long run?
A. no barriers to entry B. many buyers C. price taker D. homogeneous product