You purchased an automobile a year ago for $10,000 . Its current market price is $6,000 . and the expected market value one year from now is $4,000 . If the interest rate is 10 percent, how much will it cost you to keep the car for an additional year (over and above operation and maintenance costs)?
a. $2,000
b. $2,600
c. $4,000
d. $6,000
B
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Claire has just eaten her second bowl of cereal. We can say:
A. her second bowl likely reduced her total utility. B. her second bowl likely added less to her total utility than the first. C. her third bowl will likely decrease her total utility. D. her third bowl will likely increase her total utility by at least as much as the second.
One reason firms in monopolistic competition can charge different prices is that their products are
a. identical. b. similar. c. differentiated. d. guaranteed.
Which of the following is an example of an automatic stabilizer?
a. Decrease in tax rates by Congress in times of unemployment b. Decrease in tax rates by Congress in times of inflation c. Increase in government defense spending during war d. Increase in unemployment compensation during recession e. Decrease in welfare programs during inflation
If a firm engages in a low-price guarantee, that firm picks a:
A. high price but instantly switches to a low price if its competitors choose a low price. B. low price but instantly switches to a high price if its competitors choose a low price. C. high price but instantly switches to a low price if its competitors choose a high price. D. low price no matter what the competition does.