The growth over time in the spread between price and marginal cost of an exhaustible resource is equal to
A) zero.
B) one.
C) the interest rate.
D) the present value of the reserves.
C
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Countries with more independent central banks tend to have
A) higher inflation rates. B) lower inflation rates. C) lower rates of unemployment. D) higher rates of GDP growth.
Financial risk is associated with changes in
A) the demand for a firm's products. B) a firm's debt. C) a firm's labor costs. D) government regulations of a firm's activities.
Reserves held beyond the required amount are called __________ reserves
A) redundant B) precautionary C) excess D) surplus
"If the cost of college tuition goes up, then fewer people will go to college." This statement:
A. is always true. B. is true only if for some students the cost of college after the tuition increase exceeds the benefits of attending college. C. would never be true. D. ignores the opportunity costs of attending college.