Assuming zero transactions costs, if your local grocer buys oranges at a low price from an orchard and resells them to you at a higher price, then the grocer's revenue minus costs is known as
A) transactions profits. B) pure profits.
C) excess profits. D) arbitrage profits.
D
Economics
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In order to predict the marginal rate of return on investment, producers must forecast the interest rate
a. True b. False
Economics
(Advanced analysis) In a private closed economy, (a) the marginal propensity to save is 0.25, (b) consumption equals income at $120 billion, and (c) the level of investment is $40 billion. What is the equilibrium level of income?
A. $280 billion. B. $320 billion. C. $262 billion. D. $198 billion.
Economics