Tina has $1,000 that she wants to save for at least five years. It’s important to her that her investment is very low risk, but she would still like to earn some interest on her savings. Which of the following instruments would be the best choice for Tina?
a. Savings account
b. Rental property
c. Gold
d. Certificate of deposit
d. Certificate of deposit
With a certificate of deposit (CD), you agree to deposit a certain amount of money, often measured in thousands of dollars, in the account for a stated period of time, typically ranging from a few months to several years. In exchange, the bank agrees to pay a higher interest rate than for a regular savings account.
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Legal limits on prices will tend to cause misallocation of resources because
A. the market price does not reflect the costs of production. B. people are unable to determine their preferences at the high or low price. C. producers are able to produce less efficiently. D. consumers no longer have incentive to spend their income efficiently. E. All of these responses are correct.
Suppose that your firm wants to import sugarcane from Brazil. The exchange rate is 3 Brazilian reals per U.S. dollar and sugarcane costs 36 reals per ton. How much is a ton of sugarcane in U.S. dollars?
A) $12 B) $39 C) $108 D) $109
Only economists and other “social” scientists have areas of dispute within their disciplines.
Answer the following statement true (T) or false (F)
Suppose the country of Maverick has specialized in the production of a good but has not yet entered into trade. At this point in time, Maverick has
A. Shifted its production possibilities curve outward. B. Moved to a level of consumption outside its production possibilities curve. C. Moved along its existing production possibilities curve. D. Moved to a level of production outside its production possibilities curve.