Which of the following interest rates is usually the highest?
A. 30-year mortgage rate
B. 20-year Treasury bond rate
C. Consumer credit-card rate
D. Prime rate of banks
C. Consumer credit-card rate
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The neoclassical growth model argues that the only way to increase growth in the long-run is
a. increase savings rates. b. reduce depreciation rates. c. reduce population growth. d. increase technology growth.
International price discrimination for a good is possible if
A) goods are sold through the gray market. B) the price difference between two countries is greater than the transaction costs in arbitrage. C) the price difference between two countries is less than the transaction costs in arbitrage. D) None of the above.
A monopolist that is earning economic losses will, in the long run,
a. exit the industry. b. shift it's demand curve rightward. c. stay in the industry, since eventually the price will have to rise. d. encourage competitors to enter the industry in order to enliven it.
Related to the Economics in Practice on p. 512: In Santa Cruz, the red feathers of the Scarlet Honeyeater bird were used as currency. Using feathers to make a purchase would be using the feathers as a(n)
A. legal tender. B. store of value. C. unit of account. D. medium of exchange.