A competitive capital market is important to society because it directs resources toward projects that
A) can be completed quickly.
B) are valued more highly than their cost.
C) have an outcome that is known with certainty.
D) reduce the value of the resources employed.
B) are valued more highly than their cost.
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Refer to Edgeworth Box Economy. Based on the situation shown in the diagram, we can conclude that
The accompanying diagram shows an Edgeworth box economy. The initial endowment is point O. At current relative prices, Augie chooses point X and Bev chooses point Y.
a. Augie and Bev have reached a competitive equilibrium.
b. the relative price of food must rise to clear the market.
c. both point X and point Y must lie on the contract curve.
d. there is a shortage of clothing and a surplus of food.
If the consumption of a good by one person reduces the amount of it that can be consumed by others, the good is
A. excludable. B. nonexcludable. C. rivalrous in consumption. D. nonrivalrous in consumption.
An example of an oligopoly is: a. the book industry
b. the music CD industry. c. the automobile industry. d. the market for soybeans.
Recall the Application about running a software programming business to answer the following question(s).If you have $10,000 to start a software development business, the interest rate is 4 percent, your cost of your computer is $5,000, and the earnings you sacrifice from working at another job are $32,000, your yearly cost of doing business would be:
A. $47,000. B. $47,400. C. $37,400. D. $37,000.