In the following table, fill in the columns for your return on investment if the price of your house increased or decreased by 40 percent, based on the down payments specified in the first column
Return on Your Investment From
Down Payment A 40 Percent Increase in the Price of Your House A 40 Percent Decrease in the Price of Your House
100%
20
10
5
Return on Your Investment From
Down Payment A 40 Percent Increase in the Price of Your House A 40 Percent Decrease in the Price of Your House
100% 40% -40%
20 200 -200
10 400 -400
5 800 -800
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In monopolistic competition, when firms make an economic profit
A) the existing firms continue to make an economic profit in the long run because of product differentiation. B) new firms enter the industry so that the price falls and the economic profit eventually falls to zero. C) new firms enter the industry so that output decreases and the economic profit increases. D) new firms enter the industry so that output increases and the economic profit increases.
Opening trade between a nation that has "cheap labor" and one that has "expensive labor" will
a. lower the standard of living in both countries. b. raise the standard of living in both countries. c. make some workers less efficient. d. lead to an inappropriate allocation of resources.
Other things the same, an increase in wages above their equilibrium level
a. increases frictional unemployment but leaves the natural rate of unemployment unchanged. b. increases frictional unemployment and increases the natural rate of unemployment. c. increases structural unemployment but leaves the natural rate of unemployment unchanged. d. increases structural unemployment and increases the natural rate of unemployment.
Comment on the following: "Present-biased people are impatient, but impatient people don't necessarily have to be present-biased."
What will be an ideal response?