Dairy price supports create permanent, above-normal rates of return to dairy farming
a. True b. False
b
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Suppose a bond promises to pay its holder $100 a year forever. The interest rate on the bond rises from 4 percent to 5 percent. The price of the bond
A) falls from $2,500 to $2,000. B) does not change because it is not affected by the interest rate. C) falls from $25,000 to $20,000. D) rises from $2,000 to $2,500.
Which of the following events would cause a movement upward and to the right along the supply curve for mangos?
a. The number of sellers of mangos increases. b. There is an advance in technology that reduces the cost of producing mangos. c. The price of fertilizer decreases, and fertilizer is an input in the production of mangos. d. The price of mangos rises.
Discuss what experience concerning required reserves occurred during the Great Depression that contributes to the decision today not to use required reserves as an active tool of monetary policy.
What will be an ideal response?
Refer to the following figure showing demand and marginal revenue for a monopoly.
If production costs are constant and equal to $10 (i.e., LAC = LMC = $10), what price will the monopoly charge?
A. $20 B. $15 C. $10 D. $5 E. $25