The argument that supply of apartments is inelastic in the short run is based on the idea that
A. it takes time to build new apartments.
B. it is costly to move to a different location.
C. landlords will fix up many new apartments when there are small changes in rent.
D. people will change apartments quickly when there are small changes in rent.
Answer: A
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An LDC can experience economic development at virtually zero opportunity cost by
a. establishing a comprehensive banking system b. taxing its citizens at a higher rate c. bringing in foreign direct investment d. increasing its population growth rate e. giving up consumer goods to acquire capital goods
Technically speaking, if price > AVC, then
a. TR > TC b. profit is positive c. TR > TVC d. profit is negative e. the firm should shut down
When the Fed announces that it is raising the federal funds rate, this signals its intention to _______ bonds in the open market and _______ the money supply.
A. Buy; reduce B. Buy; increase C. Sell; reduce D. Sell; increase
Compounding refers to the
A. process of earning interest on both the principal and the interest of an investment. B. internal rate of return a firm earns on an investment. C. real interest return after taxes. D. calculation of after tax interest returns.