The opportunity cost of capital is
A. a part of economic profits.
B. the normal rate of return.
C. an explicit cost.
D. usually unknown and must be estimated by looking at the price of capital goods.
Answer: B
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Suppose real disposable income increases by $1,000. Given this information, we know that
A) consumption will generally increase by more than $1,000. B) saving will generally increase by exactly $1,000. C) consumption will generally increase by exactly $1,000. D) consumption will generally increase by less than $1,000.
A tax cut that increases the budget deficit results in ________ in the ________ loanable funds
A) an increase; supply of B) a decrease; supply of C) an increase; demand for D) a decrease; demand for E) no change; either the demand for or the supply of
Issuing stock is riskier for corporations since there is a legal requirement to pay dividends.
Answer the following statement true (T) or false (F)
Refer to the above figure. Demand will be unit-elastic when quantity is between
A) 0 and A. B) 0 and B. C) A and B. D) B and C.