In economics, interest refers to all of the following EXCEPT
A. the return paid to the owners of capital.
B. the payment for current rather than future command over resources.
C. the cost of obtaining credit.
D. the return paid to owners of financial institutions.
Answer: D
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In the above figure, if the price is equal to $50, there is
A) a surplus of 200 units. B) a shortage of 100 units. C) an excess quantity demanded of 50 units. D) an inadequate supply of 100 units.
Empirical research indicates that the expansion of Medicaid has led to a number of unintended consequences including
a. an increase in the incidence of low-birth weight babies among participants. b. fewer pregnant women seeking prenatal care. c. an increase in the birthrate among the eligible population. d. all of the above.
An efficient solution to a pricing problem
A. makes both buyers and sellers better off than any other possible solution. B. may not be the socially “fair” solution. C. occurs when producers’ total cost of production equals consumers’ total utility from the output produced. D. maximizes the output of the good being priced.
Suppose a firm operates in the short run at a price above its average total cost of production. In the long run the firm should expect
a. new firms to enter the market. b. the market price to rise. c. its profits to rise. d. Both b and c are correct.