Suppose you purchase a savings bond today for $25 . In seven years you may cash in the savings bond for $50 . What is the approximate interest rate paid by the savings bond?
a. 5%
b. 10%
c. 15%
d. 20%
b
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A marginal benefit curve
A) is the same as a demand curve. B) is the same as a supply curve. C) slopes upwards. D) is a vertical line at the efficient quantity. E) is U-shaped.
Taxes that enhance economic efficiency will have a better chance of passing through Congress than less efficient tax reforms. _____
a. This is probably enough to produce an efficient tax system b. This is not enough to produce an efficient tax system c. This shows special interests have no impact. d. This shows that many government officials act in the public interest.
The city of Burgersville has 100 restaurants specializing in hamburgers. Each one tries to do its own special take on the hamburger, as well as having its own decorative and advertising styles. This ______________ creates monopolistic competition.
a. distinctiveness b. similarity c. imperfectly competitive market d. perfectly competitive market
Suppose a firm's short-run production function is given by Q = 3?L, where L represents the number of hours of labor employed. The firm has a sunk cost of $500 and the wage rate is $18 per hour. What is the firm's short-run cost function?
What will be an ideal response?