A nation's supply of capital refers to its level of
a. common stocks and corporate bonds.
b. financial wealth.
c. production equipment.
d. monetary balances.
c
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The price of peaches goes up and I observe you buying fewer strawberries. Which of the following is consistent with this observation:
A. Strawberries are inferior and peaches are normal. B. Strawberries are normal and peaches are inferior. C. Both strawberries and peaches are inferior. D. Both (a) and (b). E. Both (a) and (c). F. Both (b) and (c). G. All of the above.
The cost that a firm incurs as a consequence of owning an asset is known as
A. accelerated depreciation. B. expensing. C. user cost of capital. D. economic depreciation.
Exhibit 36-2 Stock High Low Close Net chg. Dasher 17.25 16.75 17.00 (A) Dancer 34.85 34.25 (B) +0.25 Prancer 56.50 55.90 56.00 (C) Vixen 65.90 (D) 64.75 -0.75 Refer to Exhibit 36-2. If the closing price of Dasher's stock on the previous day was $17.50, what value goes in blank (A)?
A. -0.50 B. +0.50 C. -0.25 D. -0.75 E. There is not enough information given to answer this question.
Kate and Ali can live together in a two-bedroom apartment for $600 per month, or they can each rent a one-bedroom apartment for $400 per month. Apart from the rent, they are indifferent between living together and living apart, except for one problem: Kate hates Ali's taste in music. Kate would be willing to pay up to $100 a month to avoid hearing Ali's music. Ali would give up listening to her music for no less than $300 per month. If Kate and Ali decide to live together, is it socially optimal for Ali to play her music in the apartment?
A. Yes, because the benefit to Ali of listening to her music is greater than the cost to Kate. B. Yes, because the benefit to Ali of listening to her music is less than the cost to Kate. C. No, because the benefit to Ali of listening to her music is less than the cost to Kate. D. No, because the benefit to Ali of listening to her music is greater than the cost to Kate.