The Great Homebody Nationwide Sweepstakes promises its winners a choice between $200,000 now or $120,000 now and $100,000 next year. The winners should take the $200,000 now
a. no matter what the interest rate is
b. no matter what the interest rate is, if their rate of time preference is high
c. no matter what the interest rate is, if their rate of time preference is low
d. only if the interest rate is above 25 percent
e. only if the interest rate is below 25 percent
D
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What is dumping?
What will be an ideal response?
Claude's Copper Clappers sells clappers for $40 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $39, average variable cost is $25, and average total cost is $45 . To improve his profit/loss situation, Claude should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
Graphically show why one electric company can operate more cheaply than two.
What will be an ideal response?
People are unemployed if they are over 16 and not working due to:
A. The inability to find a job even though they are looking. B. A two-week summer vacation. C. A strike. D. The lack of motivation to look for work.