A firm's retaining of earnings is really equivalent to the firm
A. decreasing the net worth of households.
B. decreasing its own net worth.
C. lending money to households.
D. borrowing money from households.
Answer: D
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Consider the above table. Assuming the government imposes a price ceiling on garbanzo beans of $4, what would be the likely result?
A) a surplus of 2,000 garbanzo beans B) a shortage of 2,000 garbanzo beans C) No change, equilibrium would prevail. D) The quantity demanded of garbanzo beans would fall to zero.
The principle of backward induction proves that in price-fixing oligopoly games:
a. the players honor the agreement if the game is repeated. b. the players honor the agreement if the game is played five times. c. the players dishonor the agreement if the game is not played more than twice. d. the players dishonor the agreement if the game is repeated a number of times, as determined prior to the start of play.
Under what circumstances will inflation help borrowers at the expense of lenders? Under what circumstances will both parties be unaffected? Which scenario would you expect in the long run?
You deposit X dollars into a 3–year certificate of deposit that pays 4.75 percent annual interest. At the end of the 3 years you have $4,229.70 . What number of dollars, X, did you deposit?
a. $3,680.00 b. $3,712.77 c. $3,750.00 d. $3,772.57