A bond that promises to pay $X in 10 years must be worth less than $X now.
Answer the following statement true (T) or false (F)
True
Rationale: An asset that can fund consumption in the future must be worth less now --- else no one would buy the asset but would instead simply save money in some other way.
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People choose to do something:
A. when they believe the benefits outweigh the costs of the decision. B. when they believe the costs outweigh the benefits of the decision. C. when they believe their decision cannot be questioned by anyone else. D. when they believe it won't harm anyone and will better themselves.
Suppose you were competing in a sealed-bid, second-price auction for a Vermeer painting, which you happen to value at $100,000 . What bid should you submit?
a. Exactly $100,000 b. Somewhat lower than $100,000 depending on the number of other bidders c. Somewhat higher than $100,000 depending on the number of other bidders d. Cannot say which of a, b, or c is right without further information
When a single firm in an oligopoly market decides to increase output, that firm:
A. feels the quantity effect, but other firms feel the price effect. B. feels both the quantity effect and price effect, but other firms only feel the price effect. C. feels the price effect, but other firms feel the quantity effect. D. feels the price effect, but other firms feel both the price and quantity effects.
When average total cost rises if a producer either increases or decreases production, then the firm is said to be operating at efficient scale
a. True b. False Indicate whether the statement is true or false