Private investment fluctuates ________, which supports those economists who advocate policy ________
A) procyclically, rules
B) procyclically, activism
C) countercyclically, rules
D) countercyclically, activism
B
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A recurring theme in economics is that people
A. can increase resources by limiting their economic wants. B. have unlimited resources but limited economic wants. C. have unlimited economic wants but limited resources. D. have limited economic wants and limited resources.
Refer to the table above. If the firm is a monopolistic competitor, what is the equilibrium price charged by the firm?
A) $77 B) $80 C) $65 D) $57
Your grandfather tells you that he earned $.50 per hour at his job when he was a boy in 1929
a. Given that the CPI was 17.1 in 1929 and 184.0 in 2003, how much would you have to make in 2003 to have the same real hourly wage? b. You made $5.50 an hour working during 2003 . Were you better off than your grandfather in terms of purchasing power? Explain. c. Your grandfather also tells you that a soda cost $.05 in 1929, and you know a soda cost $.55 in 2003 . You decide to use the price of a soda as the price index. How much would the 2003 "soda equivalent" of $.50 per hour in 1929 be?
Health Bars is considering a two-year advertising campaign. The campaign will cost $60,000 at the end of each of the two years. The managers of Health Bars have estimated that the campaign will generate $42,000 a year in additional profit for the next three years. If the discount rate is 4 percent, what is the net present value of the advertising campaign?
A) $5,125 B) $3,388 C) $2,896 D) $3,952