Oxford University Press - Online Resource Centres

King: Economics

Chapter 15

Instructions

Answer the following questions and then press 'Submit' to get your score.

Question 1

Which of the following decisions would a carpet maker not analyse using marginal product analysis?

Question 2

Which of the following statements about people who rent out land for animals to graze on is true?

Question 3

Suppose the discount rate is 10% per year. Which of the following statements is true?

Question 4

Suppose a firm is considering the purchase of a machine. The machine costs £10,000 and has an expected stream of future returns which, at the current risk-free interest rate, have a present value of £10,500. Which of the following statements is false?

Question 5

Which of the following statements about investment appraisal is false?

Question 6

Suppose someone owns a mineral resource and suppose the interest rate is currently 5%. Under which of the following circumstances would the owner definitely prefer to extract it now rather than in one year's time?

Question 7

Suppose the interest rate is 5%. Which of the following statements would explain why the owners of a mineral resource will extract some this year but not all?

Question 8

Which of the following statements about the future price of a mineral resource is false?

Question 9

Which of the following should someone not allow for when assessing the costs of continuing full-time education beyond the school leaving age?

Question 10

What does UK evidence suggest about the returns from taking an economics degree?