If government were to issue a fixed number of licenses to produce a good or provide a service, this would likely:
A. increase the wage received by those who have licenses.
B. lower the wage received by those who have licenses.
C. lower the price of the good or service to consumers.
D. increase the demand for goods.
Answer: A
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If the present value equation used to calculate the price of a stock you are considering buying is "[$12 / (0.05 - 0.02)], which of the following is correct, assuming that dividends will grow at a constant rate?
A) The dividend is $12 per share, the dividend growth rate is 2 percent, and the interest rate is 5 percent. B) The stock price is $12, the dividend growth rate is 5 percent, and the interest rate is 3 percent. C) The dividend is $12 per share, the dividend growth rate is 5 percent, and the interest rate is 2 percent. D) The stock price is $12, the dividend growth rate is 2 percent, and the interest rate is 5 percent.
In the DMP model
A) the market wage is equal to the marginal product of labor. B) the market wage is equal to the marginal rate of substitution of leisure for consumption. C) the wage is equal to the marginal rate of transformation. D) the wage is determined by bargaining between the firm and the worker.
Which of the following are likely to be studied in a microeconomics course?
a. choices made by individual consumers b. the causes of inflation c. how the economy's total output is measured d. how an increase in government spending affects the level of unemployment
The only way to avoid the free rider problem is to allow the government to provide a public good
a. True b. False Indicate whether the statement is true or false