Which of the following best expresses the formula for determining the price of a U.S. Treasury bill that matures n periods from now per $100 of face value when the interest rate is i?
A. $100/(1 + i)n
B. 1 + $100/(1 + i)n
C. $100/(1 + i)
D. $100(1 + i)
Answer: A
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Refer to Figure 2-10. If the economy is currently producing at point C, what is the opportunity cost of moving to point B?
A) 46 thousand forks B) 26 thousand forks C) 40 thousand spoons D) 20 thousand spoons
A long run equilibrium: a. Will be at a greater output level than the natural level of real output. b. Will be at the natural level of real output
c. Will be at a smaller output level than the natural level of real output. d. Long-run equilibrium could be at any of the above levels of output.
X-inefficiency refers to a situation in which a firm:
A. is not as technologically progressive as it might be. B. encounters diseconomies of scale. C. fails to realize all existing economies of scale. D. fails to achieve the minimum average total costs attainable at each level of output.
One can determine the amount of any level of total income that is consumed by:
A. multiplying total income by the slope of the consumption schedule. B. multiplying total income by the APC. C. subtracting the MPS from total income. D. multiplying total income by the MPC.