How much money would you have to put into a savings account today to be worth $500 three years from now at a market rate of interest equal to 8 percent?
A) $397
B) $351
C) $420
D) $459
Answer: A
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The Troubled Asset Relief Program (or TARP) was introduced in order to:
A. reduce asset prices. B. reduce the government budget deficit. C. generate additional tax revenue. D. prevent the collapse of large financial institutions.
We often observe "pseudo-intra-industry trade" between the United States and Mexico. Actually, such trade is consistent with
A) comparative advantage associated with Heckscher-Ohlin model. B) oligopolistic markets. C) optimal tariff issues. D) the Ricardian model of trade. E) the specific factors model of trade.
Economists argue that the union wage advantage
A) has been estimated to be 100% in the private sector. B) in the private sector is a 4% increase in wages for union workers over nonunion workers. C) reached its height in 2000 in the private sector. D) has been close to zero since World War II in the private sector.
Unemployment and inflation are important determinants of short-run material welfare, whereas productivity growth is an important determinant of long-run material well-being.
Answer the following statement true (T) or false (F)