In a competitive economy, workers will be paid according to their
A. marginal productivity.
B. status.
C. need.
D. age.
Answer: A
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During recent Global Economic Crises, U.S. household liabilities have
A) increased B) decreased C) remained the same D) quadrupled
Under purely flexible exchange rates,
A) there is no intervention by the domestic fiscal or monetary authorities to specifically target the nominal exchange rate. B) there is only occasional intervention by the domestic fiscal or monetary authorities to specifically target the nominal exchange rate. C) the domestic fiscal and monetary authorities retain considerable flexibility to prevent short-run variability in the nominal exchange rate. D) the domestic fiscal and monetary authorities retain considerable flexibility to prevent long-run variability in the nominal exchange rate.
Which of the following is NOT correct concerning perfectly competitive firms in the long run?
A) Long-run economic profits are zero. B) Price equals minimum long-run average cost. C) Entrepreneurs earn the opportunity cost of their investment. D) The opportunity cost of capital is zero.
A certain machine will last one year, will produce $120 in income (received one year later), and will cost $100 . The lowest interest rate at which this investment will be unprofitable is
a. 10 percent. b. 11 percent. c. 19 percent. d. 22 percent.