As the baby boomer generation retires and takes money out of their retirement accounts, what is expected to happen to the interest rate, ceteris paribus?
A) It will increase.
B) It will not change.
C) It will decrease.
D) It will decrease because of demand-side shocks.
A
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Suppose that there are two firms, each generating three tons of SO2. Suppose also that the government has set a target abatement level of two tons. Under a policy of uniform abatement with permits, each firm would receive:
A. two non-transferable pollution permits. B. two pollution permits which they could sell to each other. C. one pollution permit with a value equal to that firm's cost of abating one ton of SO2. D. one pollution permit with a value equal to the market price for a pollution permit.
In economics, a fixed cost is a cost that
A) is present only in the short run. B) goes up as the level of output goes up. C) goes down as the level of output goes up. D) does not vary with the level of output.
If the U.S. dollar appreciates from 1.25 Swiss franc per U.S. dollar to 1.5 francs per dollar, then the franc depreciates from ________ U.S. dollars per franc to ________ U.S. dollars per franc
A) 0.80; 0.67 B) 0.67; 0.80 C) 0.50; 0.33 D) 0.33; 0.50
Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansion strategy: they rushed to open the first discount store in small towns that could only support one discount store. In the language of game theory:
A) Wal-Mart was a dominant firm. B) Wal-Mart made empty threats. C) Wal-Mart employed a maximin strategy. D) Wal-Mart employed a preemptive strategy.