Figure 3-5
In , if the initial demand for margarine were D1, an increase in the price of butter, which is a substitute for margarine, would tend to cause which of the following changes in the market for margarine?
a.
a shift in the demand curve from D1 to D2
b.
a shift in the demand curve from D2 to D1
c.
a movement along demand curve D1 from a to b
d.
a movement along demand curve D1 from b to a
a
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Answer the following statement(s) true (T) or false (F)
1. Achieving cost-effectiveness means that the present value of costs (PVC) is minimized for some pre-established benefit goal. 2. To achieve allocative efficiency, the present value of net benefits (PVNB) must be minimized. 3. In conducting a benefit-cost analysis, it is more difficult to assign a dollar value to costs than to benefits. 4. Selecting the social discount rate is among the issues debated in the use of benefit-cost analysis for public policy evaluation.
Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, there is an
A) excess supply of 8 t-shirts. B) excess supply of 10 t-shirts. C) excess demand of 8 t-shirts. D) excess demand of 10 t-shirts.
What was particularly significant about the failure of the Bank of New England in 1991?
A) It was the FDIC's first use of the purchase and assumption method. B) It fell under the FDIC's "too big to fail" policy. C) The FDIC had to delay bank liquidation due to lack of funds. D) The FDIC began its policy of insuring checkable deposits fully.
Suppose you buy a stock that sells for $20. It's expected annual dividend is $2 and you expect its price to be $25 in one year. What is your expected rate of return on the stock?
What will be an ideal response?