If the interest rate is 10 percent, the net present value of $600 to be received two years from now is
a. $495.87.
b. $545.45.
c. $600.
d. $660.
A
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When net exports increase,
A. the expenditures schedule increases. B. the expenditures schedule decreases. C. there is a corresponding increase along the aggregate demand curve. D. there is a corresponding decrease along the aggregate demand curve.
Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. What is the competitive market quantity?
A. 108,000 B. 60,000 C. 500 D. 0
The introduction of the power loom during the Industrial Revolution caused:
A. economic growth. B. the long-run aggregate supply curve to shift to the right. C. an increase in the potential output of the economy. D. All of these are true.
"The social cost of a monopoly comes from the fact that it charges a price higher than what consumers are willing to pay." Do you agree or disagree? Why?
What will be an ideal response?