If the interest rate is 12%, the current market value of $1 to be delivered in one year is
A. $0.89.
B. $0.95.
C. $1.00.
D. $1.15.
Answer: A
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In the long-run production function, all of the inputs to the production process are allowed to vary
Indicate whether the statement is true or false
An increase in government spending might be an example of a ________ policy for the purpose of ________
A) monetary; lowering unemployment B) monetary; reducing inflation C) monetary; increasing saving D) fiscal; reducing inflation E) fiscal; lowering unemployment
The imposition of price ceilings on a market often results in
a. an increase in investment in the industry. b. a persistent surplus in the market. c. the diversion of income toward black-market suppliers. d. lower prices being offered on the black market.
An externality is
A) a benefit realized by the purchaser of a good or service. B) a cost paid for by the producer of a good or service. C) a benefit or cost experienced by someone who is not a producer or consumer of a good or service. D) anything that is external or not relevant to the production of a good or service.