Economists use theories to:
a. abstract from the complexities of the world.
b. understand economic behavior

Suppose a ski resort decides to sell its lift tickets "below cost" all season long, charging $20 per day as opposed to $30 per day. In principle, how would each ticket sale affect GDP?

A) GDP would fall by $10. B) GDP would rise by $10. C) GDP would rise by $20. D) GDP would rise by $30 after the appropriate cost-price adjustment has been made.

A Treasury bill with an original maturity of six months currently sells for $972.58. The bill was issued 30 days ago. An investor who purchases this bill today would have a yield on a discount basis of __________ percent

A) 6.58 B) 5.50 C) 5.42 D) 6.49