According to the permanent income hypothesis, a temporary increase in income that does not affect average lifetime income would
A) cause no change in consumption.
B) cause a decrease in consumption and saving by the same amount.
C) cause an increase in consumption and saving by the same amount.
D) cause a large increase in consumption.
A
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If purchasing power parity exists and the exchange rate is 1.50 U.S. dollars per British pound, than a latte that has a price of $4.00 in San Jose, California, has a price of ________ in London, England
A) 2.67 pounds B) 4.00 pounds C) 8.00 pounds D) 0.37 pounds E) 6.00 pounds
Which would not be considered as capital (or an economic resource) by an economist?
a. A crane used by a building contractor b. A share of corporate stock issued by General Motors c. An automobile used by General Electric d. A razor used by a barber
If the annual interest rate is 5% (.05), the price of a one-year Treasury bill per $100 of face value would be:
A. $95.00 B. $96.10 C. $95.24 D. $97.50
Marty's Bird House suffers a short-run loss. Marty can reduce his loss below the amount of his total fixed costs by continuing to produce if his revenue
A) exceeds his implicit costs. B) exceeds his nonmonetary opportunity costs. C) exceeds his variable costs. D) exceeds his marginal costs.