Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles.
B. an increase in economic growth.
C. an increase in unemployment.
D. a reduction in unemployment.
Answer: A
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The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. For Bagels 'R' Us, ________ is a ________.
A. abiding by the agreement; dominant strategy B. cheating on the agreement; dominant strategy C. cheating on the agreement; dominated strategy D. abiding by the agreement; dominant strategy when Bagel World also abides
When the price of a financial asset ________ its interest rate will ________
A) rises; remain the same B) falls; rise C) falls; fall D) rises; rise
You own 100 shares of stock that are earning $2 per share per year. According to market analysts, the stock is expected to continue to earn $2 long into the future. Using the annuity rule, and assuming an interest rate of 6.5 percent, it follows that the present value of these 100 shares is:
A. $30.77. B. $3,076.92. C. $30,076.92. D. $307.79.
Refer to the above figure. The figure represents the consumption function for a consumer. Point D represents
A. zero saving. B. dissaving. C. saving. D. autonomous consumption.