Suppose the current interest rate is 5% and you pay $250 for a bond. What is the total payment that should be made to you in one year?
a. $12.50
b. $262.50
c. $237.50
d. $255.00
e. $267.50.
B
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If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of
A) economies of scale. B) the law of supply. C) diminishing returns. D) diseconomies of scale.
The success of a cartel rests upon
A) inducing all members to limit their combined output and charge the same price. B) inducing all members to differentiate their products and charge different prices. C) making exit from the cartel as nearly costless as possible. D) discouraging some firms in the market from joining.
In perfect competition, a firm’s marginal revenue equals the price of the product.
Answer the following statement true (T) or false (F)
The Fed can raise the discount rate when it wants to:
a. decrease the money supply. b. increase the money supply. c. decrease the budget deficit. d. increase the budget deficit.