A student bought a used car for $10,000 and resold it one year later for $6,500 . Insurance, license, and operating costs for the year were $1,500 . What was his economic cost of owning and operating the car for the year if the market rate of interest was 10 percent?
a. $3,500
b. $5,000
c. $6,000
d. $8,500
C
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Under a flexible exchange rate system, exchange rates are determined by free markets
Indicate whether the statement is true or false
A price ceiling is binding when it is set
a. above the equilibrium price, causing a shortage. b. above the equilibrium price, causing a surplus. c. below the equilibrium price, causing a shortage. d. below the equilibrium price, causing a surplus.
Which of the following is NOT a characteristic or focus of microeconomics?
A. individual consumers. B. analysis of aggregate economic variables C. individual markets D. firm behavior
Which of the following statements is false?
A) Exports benefit trading countries because exports create jobs. Imports do not benefit trading countries because they result in a loss of jobs. B) Each year the United States exports about 50 percent of its wheat crop and 20 percent of its corn crop. C) Most of the leading exporting countries are large, high-income countries. D) Not all sectors of the U.S. economy are affected equally by international trade.