Some people make purchases without complete information because:
A. they are irrational.
B. the benefit of having more information outweighs the opportunity cost of acquiring it.
C. the opportunity cost of getting more information outweighs the benefit of having more information.
D. No one makes purchases without complete information.
Answer: C
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Explain why bond prices and interest rates are inversely related
The real risk-free interest rate is equal to:
a. The difference between the nominal interest rate and expected inflation. b. The tradeoff that society must make between consuming now and consuming later. c. The rate at which the International Monetary Fund borrows from the World Bank. d. The rate at which banks lend to their best customers (i.e., lowest credit risk). e. None of the above is correct.
The indifference curves for left shoes and right shoes are right angles
a. True b. False Indicate whether the statement is true or false
If the interest rate is 8 percent, then what is the present value of $5,000 to be received in ten years?