1. Which of the following unions would fit into the C.I.O?
a) Teachers union
b) Coal miners union
c) Doctor's union
d) Electrician's union
e) Plumber's union
2. Present investment is?
a) Preferred to future investment, assuming a greater "ROR."
b) not preferred to future consumption
c) Preferred to future saving
d) not preferred to future saving
e) financed out of present saving
3. If the interest rate is 20 percent?
a) 100 lent today will earn 120 by next year
b) 80 lent today will earn 100 by next year
c) 100 lent today will earn 102 by next year
d) 98 lent today will earn 100 by next year
e) 100 lent today will earn 105 by next year
4. If the interest rate goes from 4 percent to 10 percent, individuals will want to?
a) save more borrow more
b) save less and borrow less
c) save more and borrow less
d) save less and borrow more
e) borrow less, but save the same amount
5. Financial intermediaries (banks) bring supplier and demanders together in the market for?
a) checking
b) loans
c) saving
d) investment
e) income
6. The firms profit-maximizing level of capital is determined where?
a) The marginal revenue product of capital curve cuts the total resource cost curve.
b) The marginal revenue product of capital curve is greater than or equal to the marginal resource cost curve.
c) The price of capital line cuts the marginal cost of capital survey from below.
d) the price of capital line cuts the marginal cost of capital curve from above.
e) The marginal revenue product of capital is tangent to the interest rate line