What is the present value of a payment of $100 to be made one year from today?
a. $100(1 + r)
b. $100/(1 + r)
c. $100 - $100 r
d. $100 - (1 + r)/$100
A
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If the demand for used cars decreases after the price of a new car falls, used cars and new cars are
A) substitute goods. B) inferior goods. C) normal goods. D) complementary goods. E) The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls.
Externalities tend to cause markets to be
a. inefficient. b. unequal. c. unnecessary. d. overwhelmed.
The LDCs have relatively ____ rates of economic growth and relatively ____ rates of population growth.
Fill in the blank(s) with the appropriate word(s).
An example of a private good is:
A. national defense. B. a bottle of perfume. C. city streets and highways. D. clean air.