Farmer Jones bought his farm for $75,000 in 1975. Today the farm is worth $500,000, and the interest rate is 10 percent
ABC Corporation has offered to buy the farm today for $500,000 and XYZ Corporation has offered to buy the farm for $530,000 one year from now. Farmer Jones could earn net profit of $15,000 (over and above all of his expenses) if he farms the land this year. What should he do? A) Sell to ABC Corporation.
B) Farm the land for another year and sell to XYZ Corporation.
C) Accept either offer as they are equivalent.
D) Reject both offers.
A
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A) Central African Republic B) Mexico C) France D) Argentina
The consumption function shows how ________
A) the marginal propensity to consume varies with disposable income B) income varies as a result of changes in consumption C) consumption depends on the decision to save D) all of the above E) none of the above
The firm becomes the dominant organization type whenever
a. markets exist b. markets don't exist c. the net value of centralized, organized production exceeds the net value of market-arranged production d. the net value of market-arranged production exceeds the net value of centralized, organized production e. private enterprise eliminates shirking
Examining the equilibrium conditions of individual markets and for households and firms separately is referred to as
A. efficiency analysis. B. general equilibrium analysis. C. comparative statics. D. partial equilibrium analysis.