The risk-free rate is not:
A. usually approximated by interest rate on corporation debts.
B. lower than any other interest rate.
C. usually approximated by interest rates on U.S. government debt.
D. the interest rate at which one would lend if there were no risk of default.
Answer: A
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Money in the U.S. is essentially debt of
A. the national and local governments. B. businesses and the banks. C. the Federal Reserve System and the banks. D. businesses and the Federal Reserve System.
The demand curve facing a firm in monopolistic competition is elastic
Indicate whether the statement is true or false
If the distribution of water is a natural monopoly, then (i) multiple firms would likely each have to pay large fixed costs to develop their own network of pipes. (ii) allowing for competition among different firms in the water-distribution industry is efficient. (iii) a single firm can serve the market at the lowest possible average total cost
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (iii) only
Suppose that the price of a hamburger is $3. Victoria is willing to pay $5 for the first hamburger, David is willing to pay $4 for the second hamburger, Kelly is willing to pay $3 for the third hamburger, and Antony is willing to pay $2 for the fourth hamburger. In equilibrium, what is the number of hamburgers purchased?
A. 3 B. 1 C. 2 D. 4