The present value of $300 received 5 years in the future would be calculated as which of the following when the interest rate is 5%?
A) 300/(1.5)5 B) 5.05/300 C) 300/(1.05)5 D) 300 × 1.5 × 5
C
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The table below shows four alternative techniques for assembling a car. The cost of labor is $20 per hour, and the cost of capital is $10 per hour. Which of the four techniques for assembling a car is not technologically efficient?
A) T-1 B) T-2 C) T-3 D) T-4
The payroll tax is a
a. progressive tax. b. neutral tax. c. regressive tax. d. proportional tax.
Here is a consumption function: C = C0 + MPC(Yd). If MPC is 0.95, then we know that
A) as Yd rises by $1, Co rises by $0.95. B) as Yd rises by $1, C rises by $0.95. C) Yd rises by $0.95. D) as C0 rises by $0.05, Yd rises by $1.
Exhibit 5-5 Gross domestic product data National income accountBillions ofdollars Depreciation$ 500 Net interest 2,000 Compensation of employees 6,000 Profits 1,500 Rental income 200 Indirect business taxes 800 Net exports 1,000 As shown in Exhibit 5-5, national income (NI) is:
A. $9,000 billion. B. $9,900 billion. C. $10,500 billion. D. $11,000 billion.