A normal rate of return refers to the ________ that investors must earn on the funds they invest in a firm, expressed as a percentage of the amount invested
A) minimum amount
B) maximum amount
C) total amount
D) profit
Answer: A
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All of the following statements present accurate information about 18th century New England except:
a. New England exported more fish than England. b. Indian Corn was an important agricultural produce in New England. c. New England had plentiful supplies of timber. d. New England farms were large and highly productive.
Monetarists argue that the Federal Reserve should allow the money supply to grow:
A. counter to the business cycles. B. faster than 10 percent annually. C. only during recessions. D. at a constant rate.
What is a prisoner's dilemma?
A) a game that involves no dominant strategies B) a game in which prisoners are stumped because they cannot communicate with each other C) a game in which players act in rational, self-interested ways that leave everyone worse off D) a game in which players collude to outfox authorities
The specialization in production made possible by the use of money to avoid barter is an illustration of the:
A. cost-benefit principle. B. principle of increasing opportunity cost. C. principle of comparative advantage. D. scarcity principle.