Len is putting in a new swimming pool. He can either heat his pool with natural gas or with solar power
If he chooses solar power it will cost him more today, but he will recover these costs over the next 7 years in savings on his natural gas bill. The solar heater is expected to last 12 years. Len: A) will put in the solar heater regardless of the discount rate because the savings in natural gas outweigh the initial cost of the solar heater.
B) is more likely to install the solar heater as the discount rate increases.
C) is more likely to install the solar heater as the discount rate declines.
D) will not put in the solar heater unless he is an environmentalist.
C
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Which of the following does the Sherman Antitrust Act forbid?
a. Monopolization or attempts to monopolize b. All types of price discrimination c. Competition among firms d. Unfair methods of competition e. Privatization of government owned firms
Which of the following is false?
a. Accepting a reduction in current income to acquire education and training can increase future earning ability, which can raise the standard of living. b. Improvements in literacy stimulate economic growth by reducing barriers to the flow of information and raising labor productivity. c. One problem of providing enough education in poorer countries is that since children in developing countries are an important part of the labor force at a young age, there is a higher opportunity cost of education in terms of foregone contribution to family income. d. Investment alone guarantees economic growth per capita.
When the price of a good decreases, the budget constraint does not change.
Answer the following statement true (T) or false (F)
The major factor contributing to lower prices for many farm products in 1998 and 1999 was:
A. A rise in the cost of farm equipment B. A drop in the value of farmland prices C. Greater demand for food and higher interest costs D. Reduced export demand and strong crop production