People's best guesses about returns on assets are called
A. expected returns.
B. the term structure of returns.
C. liquidity.
D. risk.
Answer: A
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If the average cost of producing 10 sweaters is $6.50 and the marginal cost of producing the tenth sweater is $6.75, the average cost of producing 10 sweaters will be:
A. less than $6.50. B. $6.50. C. exactly $6.75. D. more than $6.50.
The user cost of extracting a nonrenewable resource is:
A. inversely related to how much of the resource remains. B. directly related to how much of the resource remains. C. unrelated to how much of the resource remains. D. inversely related to the expected future price of the resource.
Refer to the information provided in Figure 1.4 below to answer the question(s) that follow.
Figure 1.4Refer to Figure 1.4. At Point E in Panel A, the slope is
A. zero. B. infinite. C. negative. D. indeterminate from this information.
What's the most common way for a central bank to reduce the money supply?
A. Collect higher taxes B. Sell bonds to the public C. Buy bonds from the public D. Buy bonds from the government