You have a bond that entitles you to a one-time payment of $10,000 one year from now. The interest rate is 10 percent per year. How much is the bond worth today?
a. $9,090.91
b. $10,000.00
c. $8,264.46
d. $9,523.81
a
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All else equal, relative to a person who earns minimum wage, a person who earns $30 per hour has:
A. a lower opportunity cost of driving farther to work. B. a higher opportunity cost of taking the day off work. C. the same opportunity cost of spending time on leisure activities. D. a higher opportunity cost of working an additional hour.
The chief executive officer of a monopoly firm gives a directive to his production managers to maximize the per unit profit for the upcoming fiscal year. Evaluate the economic wisdom of this advice
What will be an ideal response?
If the average annual growth rate of a developing country is 7.2 percent, real GDP will double in _____
a. 2 years b. 7.2 years c. 14.4 years d. 10 years e. 15 years
Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?
a. the theory of compensating differentials b. the efficient-market hypothesis c. human-capital theory d. signaling theory