The opportunity cost of more consumption of goods today is
A. fewer capital goods in the future.
B. more capital goods today.
C. lower consumption of goods in the future.
D. more unemployment both today and in the future.
Answer: C
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Economists should consider ________ when evaluating options
A) only explicit costs and benefits B) only implicit costs and benefits C) both explicit and implicit costs and benefits D) neither explicit nor implicit costs and benefits
What is the nature of the elasticity of the demand curve faced by perfectly competitive firm?
A. Perfectly inelastic B. Perfectly elastic C. Unit elastic D. Highly elastic
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's risk level rises relative to England and nothing else changes, then
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. b. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market falls, causing an uncertain change in the value of the Swiss franc. c. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate. d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc. e. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc.1.The balance of payments: a. Includes exactly the same transactions that are included in the foreign exchange market. b. Is the sum of all financial payments between residents of one nation and residents of the rest of the world. c. Is a flow concept. d. All the above.
Answer the following statements true (T) or false (F)
1) The two most important investor preferences are a desire for high rates of return and a dislike of inflation. 2) Arbitrage equates rates of return across assets of all risk levels. 3) Average expected rates of return and levels of risk are positively related. 4) Economic investment refers to the buying or selling of any asset in expectation of a financial gain.