For an investment in a hybrid auto like the Toyota Prius, the car owner typically pays a higher initial price for the car but enjoys lower fuel costs for the life of the vehicle
The authors note that consumers tend to use discount rates that are too high when computing the net present value of these investment decisions. If this is true, consumers would tend to place too ________ emphasis on the initial purchase price and too ________ emphasis on the future fuel savings when computing the net present value of the investment. A) much, much
B) little, much
C) much, little
D) little, little
C
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If a consumer purchases any combination of goods and services on his ________, he will exhaust his income completely
A) indifference curve B) budget constraint C) demand schedule D) demand function
With respect to financial markets, how were the late 1990s like the early part of the 2000s?
A. During both periods, the housing market experienced wild ups and downs. B. A stock market bubble burst during both periods. C. In both periods, there were bubbles in important markets. D. These two periods are not alike in any way relative to financial markets.
According to the Lucas supply function, ________ no effect on real output.
A. any announced policy change has B. any unanticipated policy change has C. only announced monetary policy changes have D. only announced fiscal policy changes have
Refer to the diagram. Realized economic growth is best represented by a:
A. move from Z to X along AB.
B. move from X on AB to Y on CD.
C. shift in the production possibilities curve from CD to AB.
D. move from X to Z along AB.