Assume that as the price of wheat falls from $10 to $8, the quantity demanded of wheat increases from 100 bushels to 150 bushels. This implies the price elasticity of demand for wheat is 0.5
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the table below. If the discount rate is 6 percent and the cost of the investment is $45,000, what is the net present value of the investment?
The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.
A) -$1,074.48
B) $1,100.56
C) $43,925.52
D) -$44,852.36
An indication that Insurance companies anticipate adverse selection is
a. they require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
Fiscal policy most directly affects the economy by increasing or decreasing:
A. aggregate demand. B. interest rate. C. long-run aggregate supply. D. the money supply.
Financial intermediaries pool funds of:
A. few large savers and provide it to many small borrowers. B. few large savers a few large borrowers. C. many small savers and provide it to many borrowers. D. many small savers and provide it to a few large borrowers.