The social discount rate used in cost-benefit analysis is equal to a weighted average of the Treasury Bill rate and the long-term government borrowing rate
a. true
b. false
b
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Receiving $100 at the end of the next three years is worth more to me than receiving $260 right now, when my required interest rate is 10%
a. True b. False
The law of comparative advantage suggests that
a. curtailing U.S. trade with other countries would make U.S. consumers better off. b. everyone would be better off if they were self-sufficient. c. countries will tend to import commodities that they can produce at a relatively low opportunity cost. d. countries will tend to import commodities that they can produce at a relatively high opportunity cost.
Information about the quality of a product is
A. both beneficial to have and costly to obtain, and therefore subject to economic principles. B. impossible to objectively assess, and therefore not subject to economic principles. C. intangible, and therefore not subject to economic principles. D. subject to economic principles only when it is paid for, for example by subscribing to Consumer Reports or by hiring a financial advisor.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs. B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs. C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs. D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.