Rising prices for a natural resource stimulate
a. the development of complements for the resource.
b. the development of substitutes for the resource.
c. the development of externalities from the resource.
d. All of the above are correct.
b
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In the figure above, point B represents
A) a current account deficit. B) a current account surplus. C) a reduction in inventories. D) a temporary imbalance in the money markets.
Stock prices can be described as "random walks" if there is no relationship between one day's prices and the following day's prices
a. True b. False Indicate whether the statement is true or false
Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent. At the end of the year prices have actually risen by 7 percent
a. Gladys earns extra real income. b. Kay loses extra real income. c. Kay receives extra real income. d. Neither party gains or loses if the loan is repaid.
Which of the following most accurately reflects the opportunity cost to a pharmacist who drives a taxi?
a. the dollars spent on his previously acquired education in pharmacy b. the revenue derived from operating the cab c. zero if the pharmacist received his education on a scholarship that paid his full tuition d. the value of the pharmacist's time in its highest valued use other than driving a cab