If a zero-coupon bond sells for par, the nominal interest rate on that bond is:
A. 100 percent.
B. zero.
C. infinity.
D. negative.
Answer: B
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Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $18
A) producer surplus will equal $22. B) Marko's will produce four shirts. C) there will be a surplus; as a result, the price will fall to $7. D) producer surplus from the first shirt is $18.
If the multiplier is 3, equilibrium real GDP is $1,000 billion, and investment is $400 billion, what will happen if investment decreases to $380 billion? Real GDP will:
a. increase to $1,020 billion. b. increase to $1,060 billion. c. decrease to $980 billion. d. decrease to $940 billion. e. decrease to $970 billion.
Figure 9.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of used refrigerators in the market are lemons (low quality), what fraction of used refrigerators sold will actually be plums (high quality)?
A. 50/250 B. 50/300 C. 250/300 D. None of the refrigerators sold will be plums.
Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. Had the demand for pumpkins been perfectly inelastic at Point A, the amount store owners would have received per pumpkin after the imposition and payment of this tax would have been
A. $3.00. B. $5.50. C. $7.25. D. $8.50.