If Oscar's company has a lease that runs until six months from now, which of the following would be true?
a. His rent payments would be considered fixed costs and anything longer than six months would be considered the short run.
b. His rent payments would be considered fixed costs and anything less than six months would be considered the short run.
c. His rent payments would be considered variable costs and anything longer than six months would be considered the short run.
d. His rent payments would be considered variable costs and anything less than six months would be considered the short run.
b
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Which prices are used to measure goods and services in calculating the nominal GDP?
A) average prices B) past years prices C) current prices D) projected prices
Capital markets
A) create the price of capital. B) determine the value of capital. C) direct capital resources to their highest valued use. D) all of these choices.
A computer you are considering for your business would add $4,000 per year to your profit. It would cost $400 a year to buy a complete maintenance contract so that you would never have repair and upkeep expense. The obsolescence depreciation is 25% a year. The going market interest rate is 5%. Assume all costs and revenue occur at the end of the year. If the going interest rate went up to 10%, how much would you be willing to pay for the machine?
What will be an ideal response?
The federal funds market is the market where:
A. the federal government raises funds to cover its budget deficit. B. the Federal Reserve System makes loans to commercial banks. C. commercial banks with excess reserves make loans to commercial banks seeking reserves. D. commercial banks make loans to the Federal Reserve.