A decrease in the marginal cost arising from a less complex specialized investment environment will cause the optimal contract length to:
A. remain constant.
B. increase.
C. decrease.
D. either increase or decrease.
Answer: B
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If you want to own $1 million when you retire in 45 years, how much should you put into your retirement fund now, given the interest rate is 3 percent?
A. $250,005. B. $436,770. C. $264,439. D. $275,389.
Refer to the graph shown. In equilibrium, total surplus is equal to:
A. 1,200. B. 1,400. C. 600. D. 2,000.
An increase in the budget surplus
a. raises net exports and domestic investment. b. raises net exports and reduces domestic investment. c. reduces net exports and raises domestic investment. d. reduces net exports and domestic investment.
The accompanying table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15. Number of Car Washes Per MonthTotal Monthly Benefit from Car Washes0$01$202$363$484$565$60 How many times a month should you get your car washed?
A. 4 B. 1 C. 3 D. 2