Taxes affect market participants by increasing the price paid by the buyer and decreasing the price received by the seller
a. True
b. False
Indicate whether the statement is true or false
True
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Economic investment refers to ________.
A. buying a financial asset for a gain. B. selling a financial asset for a gain. C. making new additions to a firm's stock of capital. D. postponing purchases of goods and services.
Fill in the blank: According to your text, ________ may be the most powerful force behind economic growth
A) minimum wages B) unionization C) technical innovation D) a well-motivated bureaucracy E) price compression
A good is inferior for a consumer if
A) it is never included in his or her consumption bundle. B) its consumption rises when income rises. C) its consumption falls when income rises. D) some minimal level of the good must be consumed to assure the consumer's survival.
Suppose a bank in Germany borrows $2 million U.S at an interest rate of 5%. The bank then converts the amount into euros, the local currency, at a rate of 2 euros per dollar. It lends the €4 million at an interest rate of 15% to other firms. After one year, the loan is repaid with interest, and the bank receives €4.6 million. The bank now wants to pay back the debt. If the current exchange
rate is 3 euros per dollar, the bank will: a. face a loss of $570,000 approximately. b. face a loss of $470,000 approximately. c. make a profit of $500,000 approximately. d. make a profit of $320,000 approximately.