For a given interest rate, r, which of the following expressions is smallest?
a. 1 + r.
b. (1 + r/2)2.
c. (1 + r/12)12
d. (1 + r/365)365.
a
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A price discriminating monopolist
A) produces more output than that produced by a single-price monopolist. B) has a lower marginal cost than that incurred by a single-price monopolist. C) makes a smaller economic profit than that earned by the single-price monopolist. D) makes zero economic profit in the long run.
Identify which of the following motivated European expansion in America
(a) International trade and finance opportunities (b) Precious metals such as gold and silver (c) The hope of finding a northwest passage to the Orient (d) All of the above
With respect to events like global warming, some economists suggest using falling discount rates because
A) exponential discounting virtually gives no weight to (large) costs incurred far into the future. B) exponential discounting weights (large) costs incurred far into the future heavily. C) events far in the future do not affect us. D) we should not care about costs far in the future.
Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2019 the CPI is 270. What does this "270" mean?
a. What cost $100 in 1982 on average cost 270 times as much in 2019. b. What cost $100 in 1982 on average cost $270 in 2019. c. What cost $100 in 1982 on average cost 0.27 times as much in 2019. d. What cost $100 in 1982 on average cost $27 more in 2019