Which one of the following statements is true?
a. Discount rates should always be set to zero to maximize efficiency
b. Discount rates should be constant over time
c. The use of discount rates will always maximize future benefits
d. The use of discount rates becomes more problematic as longer time periods are considered
e. High discount rates promote resource conservation
Answer: d. The use of discount rates becomes more problematic as longer time periods are considered
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The following are common errors students make when discussing supply and demand. What is the mistake in each? a. At equilibrium, demand equals supply. b. The quantity of demand is greater than the quantity of supply. c. They move along the line from both ends to an equilibrium in the middle. d. The increase in demand causes an increase in supply.
What will be an ideal response?
Which Federal Reserve Bank now regularly tracks target levels for the federal funds rate predicted by a basic Taylor-rule equation?
A) Boston B) Chicago C) New York D) St. Louis
In general, the number of years it will take for income to double at the current real growth rate is approximately:
A. 70 divided by the growth rate. B. 50 divided by the growth rate. C. 7 times the growth rate. D. 5 times the growth rate.
Suppose total cost is $1,000 when output is zero, $1,200 when output is one, and $1,500 when output is two, then which of the following is true?
a. Average total cost is $500 when two units of output are produced. b. Total fixed cost is $1,500. c. The marginal cost of producing the first unit of output is $1,200. d. The marginal cost of producing the second unit of output is $300.