One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
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Suppose that a firm can invest $100 today in a project and receive $105 a year from today. There is no inflation, and the annual interest rate in the economy is 4%. The firm should
A) invest in the project because the opportunity cost is the same as the return on the investment. B) invest in the project because the opportunity cost is greater than the return on the investment. C) invest in the project because the opportunity cost is less than the return on the investment. D) not invest in the project because the opportunity cost is less than the return on the investment.
"Marginal cost is the increase in total cost that results from a one-unit increase in a variable input." True or false? Explain
Indicate whether the statement is true or false
The consumer price index (CPI) excludes all of the following goods and services except one. Which type of good is included in the CPI?
a. Raw materials b. Imported goods purchased by consumers c. Machinery purchased by firms d. Goods purchased by the government e. Intermediate goods
Monica grows coconuts and catches fish. Last year she harvested 1500 coconuts and 600 fish. She values one fish as having a worth of three coconuts. She gave Rachel 300 coconuts and 100 fish for helping her to harvest coconuts and catch fish, all of which were consumed by Rachel. In terms of fish, Monica's income would equal
A. 700 fish. B. 900 fish. C. 1100 fish. D. 2700 fish.