Which of the following will lead to a decrease in the equilibrium interest rate in the economy?
A) an increase in the price level
B) a sale of government securities by the Fed
C) a decrease in GDP
D) an increase in the discount rate
E) an increase in the reserve requirement
Answer: C
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Preferences can be described as
A) what a person likes and dislikes. B) the income opportunities of several activities. C) feasible consumption combinations. D) the relative prices of goods and services.
Ways to "game" the budgeting process include
a. accelerating sales if just short of a target b. accelerating expenses if just short of a target c. accelerating sales once a target is met d. delaying expenses costs once a target is met
If insurance companies are required to offer coverage to all interested people, it is said that premiums for each person will be increased. Assume that the insurance market is perfectly competitive. What is the major reason for raising the premium?
A. The insurance companies take advantage of the increased demand and collude. B. Less healthy people join the pool of insured and hence increase the risk and the premium. C. Medical services are more expensive because of increased demand. D. None of the statements is correct.
If the average variable cost of the fifth hat is $30, then the total variable cost of five hats is
A. $6. B. $150. C. $1,800. D. indeterminate from this information.