Calculate the user cost of capital of a machine that costs $5000 and depreciates at a rate of 25%, when the nominal interest rate is 10% and the expected inflation rate is 5%.
A. $5000
B. $1500
C. $150
D. $500
Answer: B
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Logrolling consists of
A) exchanging votes to gain support for legislation. B) spreading the costs of a piece of special interest legislation over many millions of people. C) attempts directed at slowing down the growth of rational ignorance. D) increasing taxes on some people and lowering taxes on other people. E) none of the above
The data below describe the economy of Econland:Business and household saving58Government transfers and interest payments12Government purchases of goods and services25Tax collections42Public saving in Econland equals:
A. -5 B. 16 C. 5 D. 17
Ajax Corporation has just started advertising that there are 16 ounces in every package. In reality the packages contain only 14 ounces. This misleading advertising
A. could be subject to an investigation by the Federal Trade Commission. B. is in violation of the Robinson-Patman Act. C. is exempt from the antitrust laws. D. could be subject to an investigation by the Sherman Commission.
Refer to the data. The national income is:
Answer the question on the basis of the following data. All figures are in billions of dollars.
A. $265.
B. $223.
C. $208.
D. $346.