At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's net investment for the year totaled
A) 1 machine.
B) 2 machines.
C) 3 machines.
D) 6 machines.
A
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If the production possibilities frontier between bottled water and water in a jug is a straight line, which of the following statements would be correct?
A) Resources are equally productive at producing either product. B) There is no decrease in the production of one good when the production of the other is increased. C) There is no tradeoff between the two goods. D) A large amount of unemployment must exist. E) Producing more of one good gives the economy a free lunch.
Because a price floor causes:
A. a shortage, some form of rationing must occur. B. a surplus, some producers may ultimately lose because they won't have enough customers. C. a shortage, rent-seeking will occur. D. a surplus, everyone will be better off.
Many years ago, the traditional mortgage loan structure specified
A. a variable interest rate. B. an initial loan-to-value ratio of 80%. C. a down payment of 100%. D. all of the option are correct.
The market prices of existing bonds are
A. not related to the interest rate. B. inversely related to the interest rate. C. stated in terms of the interest rate. D. directly related to the interest rate.