Ms. Dunlap has just won the big bingo prize. She has two options for receiving her prize. She can either take a $1,050 now or two installments of $550, one now and one next year. At what interest rate would the two payments be equivalent?
A. 4.75 percent.
B. 8.25 percent.
C. 10 percent.
D. 15 percent.
Answer: C
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Provide a definition of development economics. Justify your choice carefully
What will be an ideal response?
If the quantity of investment has fallen but interest rates have risen, then
a. this cannot be explained in the classical model. b. savings fell. c. savings rose. d. investment demand rose.
Disposable income does not influence the amount of consumer expenditures.
Answer the following statement true (T) or false (F)
Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both. B. they will earn a larger profit than a monopolist would have earned. C. their agreement is likely to eventually collapse. D. they will charge a higher price than a monopolist would have charged.