John is able to take out a loan for $1,000 for one year at an annual interest rate of 10 percent. After calculating his return to be $200, John will:
A. make money on net, and should take out the loan.
B. make money on net, and should not take out the loan.
C. not make money on net, and should take out the loan.
D. not make money on net, and should not take out the loan.
A. make money on net, and should take out the loan.
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A fall in the price of X from $12 to $8 causes an increase in the quantity of Y demanded from 900 to 1,100 units. What is the cross elasticity of demand between X and Y?
A) 0.5 B) -0.5 C) 2 D) -2
Which of the following statements is true of a barter system? a. In a barter system, an individual offers one good or service to get another good or service. b. In a barter system, an individual offers money to get a good or service
c. In a barter system, an individual offers a good or service to get money. d. In a barter system, different kinds of money are exchanged for one another. e. In a barter system, all individuals are self-sufficient.
The price of an hour of leisure time for a successful lawyer is ________ the price of an hour of leisure for an unemployed high school drop-out.
A. greater than B. the same as C. less than D. impossible to compare to
When an economy is operating at the steady state, we know that
A) steady state saving equals consumption. B) steady state saving is less than total consumption. C) steady state saving is equal to depreciation per worker. D) steady state saving exceeds depreciation each year by a constant amount. E) none of the above