A promise of a $100 payment to be received one year from today is:
A. equally valuable as a payment received today if the interest rate is zero.
B. less valuable than receiving the payment two years from now.
C. more valuable than receiving the payment today.
D. not enough information is provided to answer the question.
Answer: A
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Which of the following clearly restricts the competitive market process?
A) Selling below cost B) Selling above cost C) Selling at cost D) Setting a price above marginal cost E) None of the above.
Suppose that the Zubians can produce 1000 pounds of flour per hours, or catch 500 pounds of fish per hour. In contrast, the Zirconians can produce 1800 pounds of flour per hour, or catch 300 pounds of fish per hours. What is the comparative advantage of the Zubians?
a. Flour. b. Fish. c. Neither flour nor fish. d. Both flour and fish.
The four-firm concentration ratio is calculated by adding the _____________ of the four largest firms in the industry.
a. profits b. total earnings c. market shares d. costs of wages
Mercantilism was a system in which all of the following were true except:
A. governments limited growth by protecting monopolies. B. governments encouraged growth by supporting trading activities. C. economic rather than social forces controlled the central economic decisions. D. political rather than social forces controlled the central economic decisions.