The difference between the present discount value of a revenue stream and the present discount value of a cost stream is called the:
A. interest rate.
B. net present value.
C. net cash flow.
D. profit.
B. net present value.
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Suppose all tickets to the World Series have already been sold. Will any further sales occur if the going price rises?
A) No, and therefore a higher price will have no effect. B) No, but a smaller quantity will be demanded. C) Not unless more tickets are printed. D) Yes, as some ticket-holders sell to others. E) Yes, but the further sales will reduce the price to the original level.
Suppose the relative price of Ford F150 pickup trucks has risen over the past decade. Yet, even at the higher price, more F150 pickups have been sold. What would an economist conclude?
A) The supply of F150 pickups is downward-sloping. B) The demand for F 150 pickups is upward-sloping. C) Buyers of F150 pickups are acting irrationally. D) All of the above are true. E) None of the above is true.
Which of the following shifts both the short-run aggregate supply curve and the long-run aggregate supply curve?
I. changes in the size of the labor force II. changes in the money wage rate III. changes in the quantity of capital A) II only B) both I and II C) both I and III D) I, II and III
Mary says she plans to return to college next semester assuming her car keeps running, tuition fees don't go up, and she will still have a student loan. An economist would say that Mary plans to return to college next semester
A) caveat emptor. B) ceteris paribus. C) laissez faire. D) post hoc ergo propter hoc