An increase in interest rates results in a(n) ________ in the required rate of return to hold stocks and ________ current stock prices.
A. decrease; raises
B. decrease; reduces
C. increase; reduces
D. increase; raises
Answer: C
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Are comic books money?
A. Yes, because the way economists define money, basically everything is money. B. Yes, because comic books can easily be traded for goods and services. C. No, because money cannot be something with intrinsic value, which comic books have. D. No, because selling a comic book takes work and provides an uncertain amount of funds.
The interest rate used to bring future sums back to present value is
A) always negative. B) zero when there is no inflation. C) the rate of discount. D) the prime rate.
Imports equal
A. 1 - exports. B. net exports/exports. C. exports + (exports - imports). D. exports - net exports.
Suppose a country produces only bikes and clothing. The country achieves an efficient allocation of resources when
A) it can't produce any more bikes unless it gives up clothing. B) it produces equal amount of bikes and clothes. C) the marginal social benefit of producing a bike equals the marginal social cost of producing a bike. D) the prices charged for the goods are as low as possible.