The present value of $100 to be received in a year is
A) less than $100 and falls as the interest rate rises.
B) less than $100 and rises as the interest rate rises.
C) more than $100 and falls as the interest rate rises.
D) more than $100 and rises as the interest rate rises.
A
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The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by
A) a point on the frontier. B) a point inside the frontier. C) a point outside the frontier. D) an intercept on either the vertical or the horizontal axis.
The marginal product of the second widget worker hired is
A) 2. B) 8. C) 10. D) 12.
If the government's provision of a subsidy is too small to counteract the entire effect of a positive externality, the:
A. quantity consumed will still be too low. B. quantity consumed will still be too high. C. total surplus will be maximized, but the outcome will be inefficient. D. total surplus will not be maximized, but the outcome will be efficient.
The definition of Gross Domestic Product is
a. the total value of all sales in the economy. b. the total value of production in the domestic economy plus the production of domestic firms in foreign countries. c. the total value of all sales of final and intermediate goods in the domestic economy. d. the total of the money values of all final goods and services produced in the domestic economy within a specific time period.