(Advanced analysis) Tani invests $100 in a financial asset earning an annually compounded interest rate of 5 percent. In about how many years will her investment be worth $150?
A. 5.2.
B. 6.8.
C. 8.3.
D. 10.
C. 8.3.
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Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family
A) hamburgers and hot dogs are normal goods. B) hamburgers and hot dogs are substitutes. C) hamburgers and hot dogs are inferior goods. D) hamburgers and hot dogs are complements.
It costs View Your World, a high-end window manufacturer, $50 for each order of windows they place. View Your World sells 2,000 windows a year and each window that is held in inventory costs $500 per year. What is the economic order quantity?
A) 40 B) 50 C) 20 D) 10
The pre-Keynesian or classical economic theory predicted that in the long-run the economy would experience:
a. long periods of high unemployment. b. rising rates of inflation. c. only temporary periods of high unemployment. d. idle factors of production.
How does the self-correcting mechanism act to pull the economy out of a recession?