In a competitive market, prices adjust until all consumers find themselves
A) maximizing utility.
B) on the contract curve.
C) happy with their original endowment.
D) with many opportunities to gain from additional exchange.
B
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Suppose the equilibrium quantity of movie tickets is 1000. If the demand curve shifts ________, the equilibrium quantity of movie tickets will ________
A) leftward; increase B) rightward; decrease C) rightward; not change D) leftward; not change E) rightward; increase
If the long-term real interest rate is 5.1%, the term structure effect is 2.0%, the default-risk premium is 1.7%, and the expected rate of inflation is 3.3%, the short-term nominal interest rate will be
A) -1.9%. B) 4.7%. C) 5.5%. D) 12.1%.
Refer to the accompanying table. According to the table, Corey has the absolute advantage in: Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. neither making nor delivering pizza. B. making and delivering pizza. C. delivering pizza. D. making pizza.
What is the present value of $1,000 paid to you in six years if the interest rate is 9%? Work it out to the nearest cent.
What will be an ideal response?