A bank will charge a higher interest rate the:
A. longer is the length of the loan, and the lower the risk of repayment.
B. shorter is the length of the loan, and the lower the risk of repayment.
C. shorter is the length of the loan, and the higher the risk of repayment.
D. longer is the length of the loan, and the higher the risk of repayment.
Answer: D
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If the money price of hats rises and no other prices change, the I. relative price of a hat rises. II. opportunity cost of a hat rises
A) only I B) both I and II C) only II D) neither I nor II
Choice variables
A. determine the constraint B. determine the value of the objective function C. can only take on integer values D. cannot be continuous E. both c and d
Consider a wine maker who has put her wine in bottles. The question is whether to store the wine for a marginal cost of $1 per year or to sell the wine today at a price of $10. If the interest rate is 6%, how much must the price of the wine increase in the next year to justify storing it?
A) $1.66 B) $1.27 C) $0.72 D) $0.45
For a particular product, a demand elasticity is a quantitative measure that shows:
A) the percentage change in quantity demanded relative to the absolute change in any of the other variables included in the demand function for that product. B) the absolute change in quantity demanded relative to the percentage change in any of the other variables included in the demand function for that product. C) the percentage change in quantity demanded relative to the percentage change in any of the other variables included in the demand function for that product. D) the absolute change in quantity demanded relative to the absolute change in any of the other variables included in the demand function for that product.