A. If prices rise at a rate faster than the nominal interest rate, then real interest is negative.
B. If the risk-free interest rate rises, the projects whose net present values are most affected are those with short lives.
C. The internal rate of return on a project is the discount rate which would make its net present value zero.
D. The internal rate of return on a project is a percentage measure of its expected returns.
A. Microeconomics is concerned chiefly with the economy as a whole.
B. Macroeconomics is concerned chiefly with individual markets.
C. Governments have no influence over market prices.
D. When economists study the price in a market, their chief aims are to understand why the price is what it is and why it may change.
A. The market demand curve represents the individual demand curves of all consumers added together.
B. The market demand curve may shift if there is a change in the behaviour of some households which consume the product.
C. The market demand curve may shift if there is change in the price of the product.
D. The market demand curve may shift if there is a change in the number of consumers who buy the product.
A. When Wimbledon's Centre Court has the legal maximum number of 15,000 spectators, watching a match there is non-rival because so many people are watching it.
B. A tennis racket is non-rival, because one person can use it today while another can use it tomorrow.
C. All motorways are excludable, because people could be charged tolls for using them.
D. National Health Service hospitals are non-excludable, because patients are not charged for using them.
A. An excess demand at the initial equilibrium price.
B. An excess demand at the new equilibrium price.
C. An excess supply at the initial equilibrium price.
D. An excess supply at the new equilibrium price.
A. Its price is fixed.
B. The quantity of it that a firm can use in the long run is fixed.
C. The quantity of it that a firm can use in the short run is fixed.
D. The quantity of output that the firm can produce with it is fixed.
A. One of the bank?s depositors makes an internet payment to another of its depositors.
B. One of the bank's depositors pays out a cheque to another of its depositors.
C. One of the bank's depositors pays out a cheque to a depositor of another bank.
D. The bank raises the interest rate it pays on deposits.