If it costs View Your World, a high-end window manufacturer, $25 per window to install a higher quality glass in its windows and consumers will pay an additional $30 per window for the improvement, which of the following is true?
A) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
B) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
C) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
D) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
D) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
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Suppose the price of gold is initially 300 U.S. dollars per ounce in New York and 450 Canadian dollars per ounce in Toronto, Canada. If the law of one price holds for gold, the nominal exchange rate is ________ Canadian dollars per U.S. dollar. If Canada experiences inflation, such that the price of gold rises to 510 Canadian dollars per ounce, but the U.S. does not experience any inflation, the nominal exchange rate would be ________ Canadian dollars per U.S. dollar.
A. 0.67; 0.59 B. 1.70; 1.50 C. 0.59; 0.67 D. 1.50; 1.70
Which of the following is a feature of a good theory?
A) A good theory does not rely on data. B) A good theory cannot be tested with data. C) A good theory is free from approximations. D) A good theory closely predicts actual behavior.
When you were born, your parents deposited $10,000 in the bank. The bank offers a fixed interest rate of 4 percent. On your eighteenth birthday, your parents decide to withdraw the money that they deposited to pay for your college tuition
How much money can they expect to withdraw? Assume that interest is compounded annually.
The main source of profit for financial institutions is: a. their ownership of stocks in commercial corporations
b. their ownership of real assets received in foreclosures on loans to households. c. the fees charged for holding and servicing checking accounts. d. the difference between interest paid on deposits and interest received on loans. e. the difference between the cost of creating new money and the interest paid on loans.