In the allocation of resources between present and future,
A. the market works imperfectly.
B. the market works perfectly.
C. centrally planned economies are more efficient than market economies.
D. the invisible hand guarantees efficiency in market economies.
Answer: A
You might also like to view...
The opportunity cost of current consumption differs for borrowers and savers only if the interest rate for savers differs from the interest rate for borrowers.
Answer the following statement true (T) or false (F)
Federal deposit insurance covers deposits up to $250,000, but as part of a doctrine called "too-big-to-fail" the FDIC sometimes ends up covering all deposits to avoid disrupting the financial system. When the FDIC does this, it uses the
A) "payoff" method. B) "purchase and assumption" method. C) "inequity" method. D) "Basel" method.
A firm will shut down in the short run if
A. TR ? TC > TFC. B. TR + TC > TFC. C. TC ? TR > TFC. D. TFC + TVC > TR.
A firm that wished to calculate the present value of its future nominal profits should use the ____ to do so
a. real interest rate b. nominal interest rate c. nominal interest rate minus the expected inflation rate d. real interest rate minus the expected inflation rate