Which of the following is an example of positive rate of time preference?
a. buying a movie ticket the night the movie comes out
b. waiting to read your favorite book until it comes out in paperback
c. waiting until the new model of the car you want comes out
d. none of the above are examples of the positive rate of time preference
a
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Linesha, a college student working part-time received a wage increase. An avid movie buff, she increased her purchases of Blu-ray discs and reduced her purchases of DVDs. Based on this information
A) DVDs and Blu-ray discs are substitutes. B) the cross-price elasticity between DVDs and Blu-ray discs is negative. C) DVDs and Blu-ray discs are normal goods. D) Blu-ray discs are normal goods and DVDs are inferior goods.
Thrift institutions that specialize in mortgage investments and borrow short and lend long are risky
Indicate whether the statement is true or false
Empirical estimates indicate that the annual welfare cost of monopoly in the United States
a. ranges from less than 1 percent to 5 percent of national income b. ranges from 10 percent to 20 percent of national income c. is approximately 10 percent of national income d. is approximately $1 billion e. is approximately $1 trillion
Proponents of deficit reduction argue that the principal effect will be an
a. outward shift of the aggregate supply curve. b. inward shift of the aggregate supply curve. c. outward shift of the aggregate demand curve. d. inward shift of the aggregate demand curve.