Suppose that the interest rate available to you on a long-term bond is 4 percent. If you hold $1,000 of your wealth in currency instead of in the form of a bond, the annual opportunity cost is:
A. $0.04.
B. $4.
C. $40.
D. $400.
Answer: C
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The Value of Call Monitoring Comcast's call center had a problem with unresolved incidents. Customers who called in for technical help often had to make follow-up calls because the first recommended solution did not work. Since the call center staff
were expected to handle an average of 10 calls per hour, Comcast suspected that calls were being terminated before the complaint had been resolved. As a possible solution, they hired supervisors to randomly listen into calls so as to better monitor inappropriate call terminations at a cost of $8,000 per month. This cut down the need for follow-up calls and, more importantly, increased customer retention. The number of customers who called in a complaint and would terminate services within three months was cut from 150 to 130 . How large must the present value of a retained customer's contribution margin be for additional monitoring to be profitable?
The breakfast cereals industry can be best modeled using the model of
A. monopoly. B. perfect competition. C. oligopoly. D. monopolistic competition.
Based on the above figure, for which of the following amounts of output at Ike's Ice Cream Kitchen does the average product of labor exceed the marginal product of labor?
A) at 10 gallons B) at 40 gallons C) at 70 gallons D) all of the above
Which of the following is false?
A) Special interest legislation is necessarily bad legislation in the sense that it does not (because it cannot) ever benefit the general public. B) A special interest group is a subset of the general population that holds usually intense preferences for or against a particular government service, activity, or policy. C) Congressional districts can be thought of as special interest groups for certain purposes. D) Special interest groups are likely to argue for their specific policies or programs by claiming they serve the best interests of the general public.