(Consider This) The story about economist Irving Fisher's conversation with his masseuse illustrates that interest payments arise because of:

A. the possibility of inflation.
B. the reality of credit risk.
C. imperfect information about the future.
D. the time-value of money.


Answer: D

Economics

You might also like to view...

Use the above table. The autonomous consumption in this table is

A) $0. B) $20. C) $50. D) $140.

Economics

Refer to Figure 16-7. The owners of the Lizard Lounge are considering the following four pricing options:

58%20PM

a. A single price scheme where the cocktail price equals the monopoly price.
b. A single price scheme where the cocktail price equals the competitive price.
c. A two-part tariff: a monopoly cocktail price and a cover charge that will generate total revenue equal to the area X.
d. A two-part tariff: a competitive cocktail price and whatever cover charge that will generate a total revenue equivalent to the area X + Y + Z.

Which pricing scheme(s) achieve the economically efficient outcome?
A) schemes a and c B) scheme b C) schemes b and d D) scheme d only

Economics

Economic growth would best be represented by a

A. Shift inward of the production possibilities curve. B. Movement from inside the production possibilities curve to a point on the production possibilities curve. C. Movement from the production possibilities curve to a point inside the production possibilities curve. D. Shift outward of the production possibilities curve.

Economics

Suppose a monopolist's demand curve is P = 60 - Q, its cost function is TC = 10Q + 50, and its marginal cost is 10. If a governmental agency wished to set the price so that it created the smallest deadweight loss without causing the monopolist to have negative economic profits, this price would be

A) $10.00. B) $11.02. C) $14.57. D) $35.00.

Economics