Suppose someone offered to give you $1,000,000 five years in the future and the anticipated interest rate is 5 percent. The present value of this offer would be worth approximately
A) $784,000.
B) $500,000.
C) $1,050,000.
D) $286,000.
A
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Bill Gates wants billions of dollars, and has them. Buddha wanted nothing, and had nothing. What can an economist conclude?
A) Gates is wealthy, Buddha wasn't. B) Buddha was wealthy, Gates isn't. C) Gates is wealthy, and so was Buddha. D) Nothing
Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of
A) avoiding import quotas. B) increasing its gains from trade. C) dumping. D) engaging in learning-by-doing.
Countries gain from specializing in producing goods in which they have ________ and trading for goods in which other countries have ________
A) a comparative advantage; an absolute advantage B) an absolute advantage; an absolute advantage C) an absolute advantage; a comparative advantage D) a comparative advantage; a comparative advantage
What was not one of the causes of hardship for Southern agricultural products in the immediate post-Civil War period (1870-1890)?
a. Increased infestation by boll weevils and other insects. b. Significant withdrawal of women and children from the fields. c. Increased competition from new cotton producers in other areas of the world. d. The loss of the plantation system.