Question 486

If a consumer purchases a refrigerator (a durable goods) which costs $1,000. The retail store makes a
$ 50 profit out of the transaction. The refrigerator is expected to last for 10 years. The GDP should be added by:
  • Question 487

    Suppose that in the pizza delivery market, as the number of stores increases, prices and average costs change in the following manner: 1 store; price=$12, average cost=$6, 2 stores; price=$10, average cost=$7, 3 stores; price=$8, average cost=$8, 4 stores; price=$6, average cost=$9. How many pizza delivery firms will enter this market in the long run?
  • Question 488

    Consider the following statements:
    I). The lognormal distribution is widely used for modeling the probability distribution of stock and other asset prices.
    II). A random variable Y follows a lognormal distribution if its natural logarithm is normally distributed.
    III). The lognormal distribution is described by the mean and standard deviation of its associated normal distribution.
    Which of the following are true?
  • Question 489

    Initially the term structure is flat. Economic factors cause the required return for a cash flow to be received in 10 years to increase by 25 basis points. This change in the term structure:
  • Question 490

    Suggestions for achieving faster long-run economic growth include the following except for:
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