A machine cost $15,000 to install, and has a resale value one year later of $12,000. If the real interest rate is 10%, then the user cost of capital is ________
A) $4,500
B) $1,500
C) $3,000
D) $1,200
A
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If government spending is $650 billion while government revenue is $950 billion, the government is said to have a
A) $300 billion budget surplus. B) $300 billion budget deficit. C) $1,600 billion budget balance. D) $950 billion budget deficit.
What would an economist assume about Osama Bin Laden and Barack Obama?
A) They pursue plans. B) Their plans are consistent with the public interest. C) They don't understand the economic way of thinking. D) Their demands for all scarce goods are very inelastic.
Explain the difference between: (1 ) the demand for domestic goods; and (2 ) the domestic demand for goods
What will be an ideal response?
Which of the following is true?
A. An import quota generates government revenue. B. Tariffs on imports never generate government revenue. C. Tariffs on imports generate government revenue as long as the domestic price is larger than the world price plus the tariff. D. Tariffs on imports do not generate government revenue if the domestic price is larger than the world price plus the tariff.