If production displays economies of scale, the long-run average cost curve is
A) downward sloping. B) below the long-run marginal cost curve.
C) upward sloping. D) above the short-run average total cost curve.
A
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Which of the following can be described as direct finance?
A) You take out a mortgage from your local bank. B) You borrow $2500 from a friend. C) You buy shares of common stock in the secondary market. D) You buy shares in a mutual fund.
The speculative attack on the German mark in 1971 resulted in
A) a large increase in the German monetary base. B) a decline in the value of the mark relative to the dollar. C) a decision to end the floating of the mark against the dollar. D) a large decrease in the German monetary base.
All the following are examples of variable costs, except
a. Labor costs b. Cost of raw materials c. Accounting fees d. Electricity costs
Consider the following three bonds, Bond F, Bond J and Bond P. Bonds F and P mature in 1 year while Bond J matures in 2 years. Bond F and J have a face value of $10,000 while Bond P has a face value of $12,000 . If the interest rate is 15%, rank the three bonds from highest present value to lowest present value
a. Bond F, Bond P, Bond J b. Bond P, Bond F, Bond J c. Bond J, Bond F, Bond P d. Bond P, Bond J, Bond F e. Bond F, Bond J, Bond P