Suppose the supply of ocean front property in San Diego is perfectly inelastic. Any increases in demand for this property increases the
A. present discounted value.
B. economic rent.
C. opportunity cost of land owners.
D. real interest rate.
Answer: B
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Which of the following is an example of a monopolistically competitive market?
A) The market for wheat B) The market for coffee beans C) The market for shampoo D) The market for premium cars
Refer to Figure 15-1. In the figure above, the money demand curve would move from Money demand1 to Money demand2 if
A) the price level increased. B) real GDP decreased. C) the interest rate decreased. D) the Federal Reserve sold Treasury securities.
Government outlays equal: a. the difference between government expenditures and government revenues. b. the sum of government expenditures and government revenues. c. the sum of government purchases and transfer payments. d. the difference between government purchases and transfer payments
e. the ratio of government purchases to transfer payments.
Assume Brandon's benefit function for water is S(W) = ?W and he consumes water both in droughts, WD, or in the rainy season, WR. Assume his current consumption bundle is WD = 36 and WR = 25 and the probability of drought is 0.75. Brandon's risk premium is:
A. 66.31 units of water. B. 0.19 units of water. C. 33.16 units of water. D. 3.20 units of water.