Economists also refer to the normal rate of return on investment as
A. the equity kicker.
B. a residual cost.
C. the fixed cost of entrepreneurship.
D. the opportunity cost of capital.
Answer: D
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According to the graph shown, if the market is in equilibrium, producer surplus is area:
A. A.
B. A + B + C.
C. A + B + C + D + E.
D. D + E.
Refer to Table 9-5. If the required reserve ratio is 10% and the market interest rate is 8%, what is Bolton Bank's opportunity cost of holding the excess reserves it is currently holding?
A) $5.6 million B) $3.2 million C) $0.8 million D) 0; Bolton Bank has no excess reserves.
Dumping is
A. international price discrimination. B. selling goods produced with government approval. C. international monopolistic pricing. D. collusive behavior among producers in different countries.
Nations which experience relatively high rates of inflation
A. cause inflation in other nations when they export their relatively high priced goods to these nations. B. will experience a reduction in the value of their currencies in the foreign exchange markets. C. will not be able to export products if their currencies depreciate in value. D. will not be able to import products unless their currencies depreciate in value.