If you paid $100 for a truckload of cabbage on Monday, how much should you be willing to sell it for on Friday, the day before it spoils?
a. $100
b. $100 plus normal accounting profit
c. $50 because it has lost value since Monday
d. whatever you can get for it
D
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Suppose the equilibrium real federal funds rate is 3 percent, the target rate of inflation is 3 percent, the current inflation rate is 1 percent, and real GDP is 8 percent below potential real GDP
If the weights for the inflation gap and the output gap are both 1/2, then according to the Taylor rule the federal funds target rate equals A) -3 percent. B) -1 percent. C) 3.5 percent. D) 7 percent.
Credit cards are considered to be money because they facilitate exchange
a. True b. False
The U.S. Postal Service engages in price discrimination.
Answer the following statement true (T) or false (F)
If government saving is negative (that is, if government is running a budget deficit), crowding out may occur. Crowding out could lead to all of the following EXCEPT
A) higher interest rate. B) decreased private saving. C) decreased quantity of investment. D) a smaller capital stock in the future.