Economists use the term "financial markets" to mean the markets in which
A) households supply their labor services.
B) the government borrows to fund any budget surplus.
C) firms supply their goods and services.
D) firms purchase their physical capital.
E) firms get the funds that they use to buy physical capital.
E
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Suppose you make $1,000 investment today that you believe will have a one-time return of $2,500 in 5 years. If the interest rate is 12%, will you have a profitable investment?
A. Yes, because the NPV is positive B. Yes, because the NPV is negative C. No, because the NPV is positive D. No, because the NPV is negative
Graph a and graph b have several differences. What difference between the two shows a failure to meet productive efficiency?
a. In graph a, ATC touches the demand curve at P equals MC.
b. In graph b, the demand curve is downward sloping.
c. In graph a, P equals both MR and MC.
d. In graph b, MC is less than P*, and q* is less than it could be.
If demand decreases and supply increases, which of the following is correct? Question 24 options:
A. The equilibrium price falls but the impact on the equilibrium quantity is ambiguous. B. The equilibrium price rises but the impact on the equilibrium quantity is ambiguous. C. The equilibrium quantity increases but the impact on the equilibrium price is ambiguous. D. The equilibrium quantity decreases but the impact on the equilibrium price is ambiguous. E. The equilibrium price falls and the equilibrium quantity decreases.
If eight lemons (low quality) and two plums (high quality) are supplied and buyers assume that there is a 40% chance of getting a lemon, there is an equilibrium.
Answer the following statement true (T) or false (F)