Although economists and accountants treat many costs differently, they both treat the cost of capital the same
a. True
b. False
Indicate whether the statement is true or false
False
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Beginning in 2008, The Federal Reserve and the U.S. Treasury Department responded to the financial crisis by intervening in financial markets in unprecedented ways. Briefly summarize the actions of the Fed and Treasury
What will be an ideal response?
A multi-plant firm has three plants. At its current production levels, the marginal cost of production is $2 at plant 1, $2.25 at plant 2, and $2.10 at plant 3. The firm's overall marginal cost of production is ________.
A) $2.25 B) $6.35 C) $7.20 D) $4.25
Last year due to the increased rainfall there was a plentiful supply of blueberries which caused their price to drop. Bakeries regularly produce and sell blueberry pie. Considering the market for blueberry pies, what factor of supply has been affected, and what was the overall effect on the supply?
A. The price of an input has been affected; supply will increase. B. The price of an input has been affected; supply will decrease. C. The new technology has been affected; supply will increase. D. The number of sellers has been affected; supply will increase.
Which of the following statements is true?
A. Deflation is an increase in the general level of prices. B. The consumer price index (CPI) measures changes in the average prices of consumer goods and services. C. The real interest rate equals the nominal rate of interest plus the inflation rate. D. Real income is the actual number of dollars received over a period of time.