At the interest rate r, the price of a depletable natural resource three years from the present (price in present = P) will be, everything else being equal, which of the following?
A. 3P
B. P3
C. P(1 + r)3
D. 3P(1 + r)3
Answer: C
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An efficient financial system
A) must disseminate information to lenders about the quality of financial claims issued. B) provides minimal information about financial markets. C) provides perfect information regarding investment opportunities to savers. D) does not provide any information to borrowers.
Assume that two firms in an oligopoly market are unable to collude. Once the Nash Equilibrium is reached a. it is always possible for one firm to increase its profits by producing more output. b. the two firms are jointly earning monopoly profit
c. neither firm is able to improve its outcome on its own. d. the outcome is equivalent to a competitive equilibrium.
In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000 . In 2010 the population was 7,300 and real GDP of 223,380 . Over the year in question, real GDP per person in Mainland grew by
a. 2 percent, which is high compared to average U.S. growth over the last one-hundred years. b. 2 percent, which is about the same as average U.S. growth over the last one-hundred years. c. 4 percent, which is high compared to average U.S. growth over the last one-hundred years. d. 4 percent, which is about the same as average U.S. growth over the last one-hundred years.
This profit-maximizing firm is making a profit or loss of about __________.
A. $800
B. $710
C. $510
D. $310