Joe's Taco Hut can purchase a delivery truck for $20,000 and Joe estimates it will generate a net income (after taxes, maintenance and operating costs) of $2,000 per year. He has no other opportunities. He should:
A. purchase the truck if the real interest rate is greater than 10%.
B. not purchase the truck if the real interest rate is greater than 2%.
C. purchase the truck only if the real interest rate is less than 2%.
D. purchase the truck if the real interest rate is less than 10%.
Answer: D
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All other things being equal, which country is likely to have the slowest economic growth?
a. Country A’s government does little to enforce the rule of law. b. Country B has a few natural resources within its borders. c. Country C places great emphasis on the importance of education for all its citizens. d. Country D’s government invests in its infrastructure and health system.
Suppose that we are currently at point b in Figure 14.1. An increase in the price level will result in a:
A. shift in the AD curve from AD1 to AD2. B. shift in the AD curve from AD1 to AD0. C. movement from point b to point a. D. movement from point b to point c.
The shape of the firm's marginal revenue curve depends on
A. how high production is. B. how many competitors it has. C. how high its costs are. D. whether the firm is a profit maximizer.
According to your textbook, it is best to view "the market" as
A) a person. B) a place. C) a thing. D) a process of plan coordination among buyers and sellers. E) a highly complicated series of exchanges, which can only be coordinated by the efforts of economists and other experts in government.