The growth over time in the spread between price and marginal cost of an exhaustible resource is equal to
A) zero.
B) one.
C) the interest rate.
D) the present value of the reserves.
C
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Refer to Table 7-6. Prior to trade, what was the opportunity cost to produce 1 sword in Morocco?
A) 1/2 of a belt B) 1 belt C) 1.5 belts D) 2 belts
Behavioral economists think that the less obvious a person's opportunity cost is:
A. the harder it is to value accurately. B. the more likely they will undervalue it. C. the less likely they are to correctly value it. D. All of these are true.
Joseph Gallo poured two glasses of wine from the same bottle but put a more expensive price tag on one glass than on the other. He let people test both and asked them which they wanted, and most wanted the more expensive glass, not knowing that both had come from the same bottle. This result indicates that firms should:
A. be careful about lowering the price of their product, because consumers may assume that a lower price means lower quality. B. always raise the price of their product. C. never lower the price of their product. D. be careful about raising the price of their product, because the law of demand is always valid.
An investment grows from $2,000 to $2,750 over the period of 10 years. What average annual growth rate will produce this result?
What will be an ideal response?