Recall the Application about the incentives to install rooftop solar panels to answer the following question(s).According to the Application, another factor that was responsible for solar power deployment was the rising price of electricity. The increase in sales due to higher electricity prices describes the economic concept of:
A. using assumptions to simplify.
B. ceteris paribus.
C. rational self-interest.
D. marginal thinking.
Answer: C
You might also like to view...
If, for a given disposable income level, the disposable income line lies above the consumption curve, saving:
a. equals consumption. b. equals disposable income. c. is less than zero. d. is equal to zero. e. is greater than zero.
If a country experiences a high rate of inflation, then the demand for that country's currency will increase
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT an example of a command-and-control regulation to limit pollution?
A. Fuel economy standards for all new cars B. A 50-cent tax on gasoline C. Mandating the use of catalytic converters on all new vehicles D. A ban on leaded gasoline
Answer the following statements true (T) or false (F)
1. You believe that a certain asset, like a business or shop, is going to be worth $100 million in five years. If the interest rate is 5%, then that asset will be worth $75 million today. 2. Other factors constant, if the interest rate is higher, the present value of a certain future amount will be smaller. 3. Joseph is considering purchasing a condo. He has the option of buying one in Midtown with a present value of $150,000 or one in downtown with a future value of $200,000. If the current market interest rate is 5 percent and he wants to buy the home with the highest future value in 5 years, he should buy the condo in downtown. 4. The current price of an asset is equal to the future value of its expected returns or income streams. 5. Stockholders of a company can benefit from either capital gains or dividends when the company is profitable