Many people who hold bonds
a. think they are poorer than they really are
b. end up oversaving because of the paradox of thrift
c. end up underconsuming
d. mistakenly view the bonds as their personal assets and as the government's liabilities
e. believe that the source of the interest they receive is the taxes they don't need to pay
D
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Lionfish is an aquatic invasive species in the southeastern U.S. and the Caribbean. Current removal policies focus on harvesting the lionfish for human consumption. However, a fishing license is required to fish in most southern states
Assume the supply of fishing licenses is Qs = 50 + 0.05L + 40P, where L = lionfish population and P = price of a fishing license, and the demand for fishing licenses is Qd = 1400 – 60P. What is the equilibrium price and quantity of fishing licenses when L = 1,000? A) P = $8.5, Q = 890 B) P = $13, Q = 620 C) P = $13.5, Q = 590 D) P = $13.5, Q = 591
If the present value of all future revenue is positive, then
A) the firm should remain operating, even if it earns negative profit in the short run. B) the firm should shut down if it is earning a negative profit in the short run. C) the firm should shut down if it cannot cover its fixed costs in the short run. D) Unable to determine with the information given.
Inflation reduces the average real income in the economy and redistributes purchasing power
a. True b. False
Why does a firm in a competitive industry charge the market price?
a. If a firm charges less than the market price, it loses potential revenue. b. If a firm charges more than the market price, it loses all its market power. c. The firm can only sell limited number of units of output, so it wants to sell at the market price in order to lower its costs. d. All of the above are correct.