As the interest rate increases, the opportunity cost of waiting to receive a future amount:
A. increases.
B. remains the same.
C. decreases.
D. may rise or fall.
Answer: A
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Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Mega Corp: TC = 5,000 + 100Q Big Inc: TC = 4,000 + 200Q When each firm produces 8 units, ________ has a lower total cost, and when each firm produces 12 units, ________ has a lower total cost.
A. Mega Corp; Mega Corp B. Big Inc; Mega Corp C. Big Inc; Big Inc D. Mega Corp; Big Inc
The Federal Reserve has been ________ preemptive because of the changing view that monetary policy has to be ________ looking
A) more; forward B) more; backward C) less; forward D) less; backward
If a firm offers a senior citizen discount,
A) the firm expects the average senior citizen to have a lower price elasticity of demand. B) the firm expects the average senior citizen to have a higher price elasticity of demand. C) senior citizens may be offended. D) it may be prosecuted for discrimination.
Suppose that Deon places a $150 value on a new MP-3 player, and Juanita places a $140 value on it. The cost of the MP-3 player is $130 . Suppose the government levies a $15 tax on MP-3 players, which raises the price to $145 . What is the deadweight loss created by the tax?