If a market basket is changed by adding more of at least one good, then rational consumers will:
A) rank the market basket more highly after the change.
B) more likely prefer a different market basket.
C) rank the market basket as being just as desirable as before.
D) be unable to decide whether the first market basket is preferred to the second or vice versa.
E) have indifference curves that cross.
A
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Which of the following assigns widely-followed bond ratings?
A) Standard & Poor's Corporation B) Securities and Exchange Commission C) Federal Reserve D) IBM
A perfectly competitive firm would be willing to remain in the industry in the long run at zero economic profit because
A. its total revenues would be positive. B. accounting profit would be negative. C. revenue is equal to all costs, including the opportunity cost of capital and labor. D. its fixed costs would prevent it from leaving the industry.
NPV calculation need to include
A) only sunk costs of a project. B) only variable costs of a project. C) all costs related to a project. D) a risk-free rate as the discount rate.
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's risk level rises relative to England and nothing else changes, then
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. b. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market falls, causing an uncertain change in the value of the Swiss franc. c. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate. d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc. e. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc.1.The balance of payments: a. Includes exactly the same transactions that are included in the foreign exchange market. b. Is the sum of all financial payments between residents of one nation and residents of the rest of the world. c. Is a flow concept. d. All the above.