In a properly functioning economy, money costs approximate opportunity costs
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose an individual firm is comparing two investments, a one year bond from a U.S. firm paying 4% or a one year bond from a German firm which is paying 6%. The current dollars-per-euro rate is 0.75, and the expected rate in one year is 0.78
If the expected rate is correct, which investment will yields a covered interest arbitrage opportunity? A) The U.S. Bond B) The German Bond C) They will have the same return D) This cannot be determined from the information given.
The objective of creating a brand name is:
a. to reduce the price of the product. b. to ensure a steady supply of the good in the market. c. to reduce the price elasticity of demand. d. to reduce the cost of production of the firm. e. to attract rival firms into the market.
Why do water supply problems exist in many parts of the world?
a. Efforts to build large-scale reservoirs in arid countries have stalled due to the enormous expense involved in completing these projects. b. Water markets are missing or incomplete. c. Global warming has increased the evaporation rate of water by over 10%. d. The water supply is unfit for public consumption in many areas due to pollution.
Suppose a taxpayer has an income of $90,000 and a taxable income of $75,000, and pays $7,500 in taxes. If the taxpayer says he is taxed at a 10 percent tax rate, he is referring to the
A. Marginal tax rate. B. Vertical tax rate. C. Effective tax rate. D. Nominal tax rate.