Which of the following concepts is most helpful in explaining why investment increases when the interest rate falls?
a. deadweight loss
b. present value
c. economic growth
d. financial intermediation
b
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Refer to Figure 11-13. The lines shown in the diagram are isocost lines. A movement from CE to BD occurs when
A) the price of capital decreases while the price of labor increases. B) the price of labor decreases while the price of capital remains unchanged. C) the price of capital increases while the price of labor decreases. D) the price of capital increases while the price of labor remains unchanged.
Which of the following is an example of price discrimination?
a. Seniors paying a lower price for tickets at movie theatres b. Students paying discounted rates on travel c. Tourists paying higher prices on local attractions than locals d. All of the above
The concept of loss aversion is:
A. preferring certain outcomes over uncertain ones. B. a general tendency for people to put more effort into achieving gains than avoiding losses. C. a general tendency for people to put more effort into avoiding losses than achieving gains. D. a spectrum of tolerance for risky situations.
Unemployment that has an entirely macroeconomic cause is called
a. frictional unemployment b. seasonal unemployment c. structural unemployment d. cyclical unemployment e. short-term unemployment