If the price of a barrel of oil is $100 this year and the interest rate is 10 percent, then according to the Hotelling Principle the price next year is expected to be ________ per barrel
A) $90
B) $110
C) $100
D) None of the above is correct.
B
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Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Suppose Steven was able to purchase a ticket at the box office for $60. Steven's reservation price for the ticket is $65. If Steven attends "Mamma Mia!" and Ingrid does not, then this situation is:
A. efficient because Steven arrived at the ticket counter before the show was sold out. B. inefficient because Ingrid would have enjoyed the show too. C. inefficient because Steven and Ingrid could have made a mutually beneficial trade. D. efficient because Steven paid less for the ticket than his reservation price.
In the United Sates, the average annual rate of growth of real wages was fastest in the period:
A. 1960-1973. B. 1960-1995. C. 1973-1995. D. 1996-2010.
Refer to the graphs shown. The consequences of improved technology combined with an increase in the number of consumers can best be illustrated by:
A. a. B. b. C. c. D. d.
Direct subsidies to agriculture, whether they are export subsidies or production subsides, are viewed as harmful because of all the following reasons EXCEPT
A) they lead to overproduction. B) they crowd out imports. C) they can lead to dumping of surplus production. D) they encourage overconsumption through low market prices.