Answer the following statement(s) true (T) or false (F)
1. It is wise to purchase an artist's work when it is expected to appreciate in value, whether or not you like it.
2. Treasury bills are sold at face value and buyers received annual interest payments from the government.
3. The value of a productive asset is equal to the present value of the stream of dividends that it produces.
4. Deficit spending by the government is unwise, because taxpayers receive nothing of value when their taxes are used to make interest payments.
5. Without inflation the real interest rate is always greater than the nominal interest rate.
1. False
2. False
3. True
4. False
5. False
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Grooming well for a big date is a
a. Screening mechanism b. Signaling mechanism c. Way to waste money d. None of the above
Last year the imaginary country of Basova had a population of 10,000, 6,000 people worked 8 hours a day, and produced a real GDP of $30,000,000 . The imaginary country of Andovia had a population of 12,000, 8,000 people worked 8 hours a day, and produced a real GDP of $38,000,000 . Which of the following is correct?
a. Basova had higher productivity and higher real GDP per person. b. Andovia had the higher productivity and higher real GDP per person. c. Basova had the higher productivity while Andovia had the higher real GDP per person. d. Andovia had the higher productivity while Basova had the higher real GDP per person.
Which of the following is an example of scarcity, rather than shortage?
a) A popular toy is sold out during the busy holiday season b) You have spent your last penny and payday is a week away c) A person wants an endless supply of everything but cannot have it d) Gasoline was rationed in America during World War II
A price ceiling creates a ________ when it is set ________.
Fill in the blank(s) with the appropriate word(s).