From the economic point of view, why might a retired couple spend four hours a day on the golf course when they could have spent their time becoming better informed about their elected representative in Congress?
A) They are going to die soon so it really doesn't matter.
B) They must love golf and hate politics.
C) The congressperson must have wronged them.
D) They consider golfing a more productive use of their time.
D
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If tariffs are effective, they tend to:
a. Increase consumption. b. Decrease government spending. c. Increase net exports. d. Have their major effect on a nation's automatic stabilizers. e. Decrease net exports.
Which of the following is a shortcoming of GDP?
a. GDP includes an estimate of illegal transactions. b. GDP excludes changes in inventories. c. GDP excludes business investment spending. d. GDP excludes nonmarket transactions.
Bank B takes 15,000 mortgage loans, bundles them together, and then sells slices of the bundle. This is descriptive of
A) creating a mortgage-backed security. B) creating a mortgage-backed liability. C) buying a collateralized debt obligation. D) selling a simple loan. E) none of the above
A price-setting firm faces the following estimated demand and average variable cost functions:Qd = 800,000 - 2,000P + 0.7M + 4,000PRAVC = 500 - 0.03Q + 0.000001Q2where Qd is the quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $53. Total fixed cost is $2,600,000. The firm should ________ because ________.
A. shut down, P = $356 < TVC = $445 B. operate, P = $560 > AVC = $160 C. operate, P = $510 > AVC = $300 D. operate, P = $600 > AVC = $255