Higher discount rates imply that
A. present payoffs are more important than future payoffs.
B. future payoffs are more important than present payoffs.
C. present payoffs are equal to the past payoffs.
D. both present and future payoffs are equally unimportant.
Answer: A
You might also like to view...
? In Figure 5-13, the consumer can afford any combination of X and Y represented by a point
A. on line AB only. B. on or below line AB. C. on or above line AB. D. anywhere on the graph.
Answer the following statements true (T) or false (F)
1) In a successive monopoly structure, if distributor has a constant marginal cost, the wholesale demand curve will lie below the retail marginal revenue curve. 2) Vertical integration is not an economically sound decision in a successive monopoly situation. 3) Vertical integration of a monopoly and a perfectly competitive firm does not yield greater economic profit. 4) If double marginalization exists between an upstream firm and a downstream firm, the vertical integration of the two firms will generate more economic profit. 5) The wholesale demand for a monopoly retailer depends of the retailer's marginal revenue.
Which of the following best describes what will happen to equilibrium if large numbers of people cancel cable television subscriptions in exchange for subscriptions to on-demand movies and televisions providers like Netflix and Hulu?
a. A change in tastes away from cable television causes a leftward shift in the demand curve, a decrease in the equilibrium quantity, and an increase in the equilibrium price. b. A change in tastes away from cable television causes a rightward shift in the demand curve, a decrease in the equilibrium quantity, and a decrease in the equilibrium price. c. A change in tastes away from cable television causes a leftward shift in the demand curve, an increase in the equilibrium quantity, and a decrease in the equilibrium price. d. A change in tastes away from cable television causes a rightward shift in the demand curve, a decrease in the equilibrium quantity, and a decrease in the equilibrium price.
If the marginal product of capital is smaller than the interest rate, then
a. investment in capital will fall. b. people are earning negative rents from capital. c. the supply of current consumption will decline. d. borrowing will increase.