The profit-maximizing rate of output for a firm in a perfectly competitive market is found where:
a. total revenue equals total cost.
b. price equals average total cost.
c. price equals marginal cost.
d. marginal revenue equals price.
c
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Under a consumption tax, only current expenditures are taxed.
A. True B. False C. Uncertain
What happens when you make a purchase using a credit card?
(A) The money is immediately deducted from your account. (B) The amount of the purchase is deducted from a prepaid account. (C) The credit card issuer pays the store. (D) The place where you made the purchase receives the money within 24 hours.
The discount rate is the interest ________.
A. rate at which commercial banks lend to the public B. rate at which the central banks lend to the U.S. Treasury C. rate at which the Federal Reserve Banks lend to commercial banks D. yield on long-term government bonds
Dean borrows $400 from Tim. Tim wants to make a 10% real return on his money, so they both agree on a 10% interest rate paid next year. Dean and Tim did not anticipate any inflation, yet the actual inflation turned out to be 4% next year. In this case
A. Tim is better off. B. Dean is better off. C. Tim will receive more than 10% of real rate of return a year from now. D. Dean will pay $56 a year from now on.