You have a bond that you can redeem for $10,000 one year from now. The interest rate is 10 percent (0.10) 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
e. $9,000.00
A
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The maximum price that a consumer is willing to pay for a good is called:
A) the reservation price. B) the market price. C) the first-degree price. D) the block price. E) the choke price.
The expanded circular flow model is a complex set of money, resource, and product flows in and out of households, firms, government, and foreign economies. If you account for each of the in and out flows, you can conclude that
a. investment must be zero b. savings can be greater than investment c. savings can be smaller than investment d. savings must equal investment e. savings must equal zero
Universities A and B are substitutes in the minds of many college students. Initially the student tuition at each university is the same and far below the equilibrium tuition. Then, the tuition at A is raised and B is not. As a result of a rising tuition at A, some students who would have applied and enrolled in A, apply to B instead. Based on the logic presented in one of the theories discussed
in the textbook, we would expect that A) instructors at B will begin to be less nearly punctual for office hours than they were previously. B) instructors at A will begin to be more nearly punctual for office hours than they were previously. C) instructors at B will be more nearly punctual for office hours than they were previously. D) a and b E) b and c
Kimberly decides to go back to college full time at the age of 30, and finds herself with a much lower income than she was earning before. Now that she has less income, she finds herself eating less steak and more pasta than ever before. We can conclude:
A. steak and pasta are both inferior goods, because they are both food she eats regardless of her income; also, pasta is an inferior good because her demand increased when her income went down. B. steak and pasta are both normal goods, because they are both food she eats regardless of her income. C. steak and pasta are both inferior goods, because they are both food she eats regardless of her income. D. pasta is an inferior good because her demand increased when her income went down.