According to economists, different kinds of shocks to the economy could be responsible for the variations in real output and employment over time. These shocks include:
What will be an ideal response?
The changes in the level of total spending, productivity, irregular innovations and money supply
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Consider the following five investments. If the nominal interest rate is five percent, which projects should be undertaken? (Note: The returns are for one period later.)
Investment Cost Returns A $100 $106 B 300 313 C 200 218 D 50 55 E 400 418
"Buy low and sell high is advice given to people who want to make a profit by buying and selling shares of stock. Arbitrage is defined as buying a product in one market at a low price and reselling it in another market at a high price
Therefore, when stock brokers buy and sell stocks to earn a profit they are engaging in arbitrage." Evaluate this statement; state whether it is true or false and explain your answer.
Unemployment caused by automation would be broadly classified as
a. structural. b. frictional. c. cyclical. d. induced.
Which of the following statements is not correct?
a. The competitive firm produces where P = MC. b. The monopolist produces where P = MC. c. The competitive firm produces where MR = MC. d. The monopolist produces where MR = MC.