Melissa purchases shares in a government bond mutual fund. Is this included in the aggregate demand component “Investment”?
A. Yes, if it is a domestic mutual fund.
B. Yes, if the purchase is made out of current income.
C. No, unless the funds are deposited in a domestic financial institution.
D. No, it would never be included.
Answer: D
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According to the graph shown, at point C the firm is earning:
A. higher profits than at point B, and they should produce more.
B. fewer profits than at point B, and they should produce more.
C. fewer profits than at point B, and they should produce less.
D. higher profits than at point B, and they should produce less.
The total market value of capital assets in the United States is about $30 trillion dollars
a. True b. False Indicate whether the statement is true or false
Suppose you are planning to sell your house. You value your house at $150,000. If you do not hire a realtor, you will be able to sell your house to a buyer whose reservation price is $180,000. If you hire a realtor, you will be able to sell your house to a buyer whose reservation price is $200,000. Assume that the realtor's opportunity cost of negotiating the sale is $10,000. In this case, does using a realtor to sell your house increase total economic surplus?
A. It depends on the sales price of the house, which isn't given in the question. B. No, because you value the house at $150,000 no matter who buys it. C. No, because your house only generated economic surplus when it was first built. D. Yes, using a realtor increases total economic surplus by $10,000.
Do you think that information technologies will someday eliminate asymmetric information problems?
What will be an ideal response?