A default premium is the interest rate premium
A) under normal market circumstances.
B) when there are no market fluctuations.
C) covering the default risk.
D) for government debt.
C
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Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources
A) the number of resources used should be decreased since society must protect its scarce resources. B) the concept of opportunity costs does not exist. C) more goods will be available than customers want to buy. D) the economy is producing efficiently.
Pricing to Competition When ShorTech introduced its Quadrant mobile phone, it had few competitors and so it set a price of $500 when its unit cost was $350 . The economics consulting firm it hired to estimate the demand elasticity confirmed this was the
optimal price. Since then, entry has occurred that make customers more price conscious. When it rehired the economics consulting firm to estimate the demand elasticity, it found that demand had become more elastic at -4 . Also, it eked out cost savings and now has a unit cost of $300 . What price should ShorTech charge now?
Because low tariffs have a high ratio of benefits to costs, they are an especially efficient way for nations to achieve full employment and growth
Indicate whether the statement is true or false
Which of the following is a production decision?
A. Whether to share information with a competitor. B. Whether to enter or exit an industry. C. Whether to increase or decrease plant capacity. D. Whether to increase or decrease output.