If the interest rate is 10%, at the end of two years, the value of $100 invested now is
A. $100/1.1.
B. $100/1.12.
C. $121.
D. $120.
Answer: C
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Refer to the scenario above. How will the demand for pens faced by the existing pen manufacturers in Eduland be affected if new firms enter the industry in the long run?
A) The demand faced by the existing firms will become perfectly inelastic. B) The demand faced by the existing firms will become perfectly elastic. C) The demand faced by the existing firms will increase. D) The demand faced by the existing firms will decrease.
Vertical relationships can increase profits through
a. preventing firms from evading regulation b. creating a double-markup problem c. better aligning the incentives of manufacturers and retailers d. preventing price discrimination
Written and recorded works, ideas, formulas, and other creative intangible property that are owned by an individual or a group of individuals are examples of the economic concept of
A. intellectual property. B. personal effects. C. physical capital. D. public property.
If the Fed buys government securities, then there is
A. a decrease in the discount rate. B. an increase in the required reserve ratio. C. an increase in the supply of money. D. a decrease in the supply of money.