A person experiences a capital gain if she
A. settles a debt.
B. invests in a physical capital project.
C. sells an asset for more than what she paid for it.
D. contributes to a country's production of capital goods.
Answer: C
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In a closed economy, without the government:
A) savings equals net exports. B) consumption equals investment. C) consumption equals savings. D) savings equals investment.
The demand curve facing a single-price monopolist
a. is the same as its average revenue curve b. is the same as its marginal revenue curve c. is the same as the perfect competitor's demand curve d. lies above its average revenue curve e. lies below its marginal revenue curve
Repeat the exercise using total analysis (i.e., total social benefits (TSB) and total social costs (TSC)).
What will be an ideal response?
Which of the following is not a benefit to lenders of financial intermediation?
a. Higher liquidity than the direct market. b. Lower credit risks than the direct market. c. Lower liquidity risk than the direct market. d. Lower market risk than the direct market. e. All the above are benefits.