You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today?
A. $50,000
B. $45,455
C. $10,000
D. indeterminate with the given information
Answer: D
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What is the relationship between the marginal revenue curve and the demand curve for a single-price monopoly?
What will be an ideal response?
Monopolistic competitors and perfect competitors are alike in: a. facing horizontal demand curves
b. earning zero economic profit in the short run. c. earning zero economic profit in the long run. d. relying on advertising to attract buyers to their products.
What happens to the monetary base if the domestic currency is undervalued (the central bank fixed the exchange rate below equilibrium) and the central bank intervenes to fix the exchange rate at its current level?
a. The change in the monetary base is ambiguous. b. The monetary base is only affected by interventions of the central bank when the domestic currency is overvalued. c. The monetary base will rise. d. The monetary base is never affected by interventions of the central bank. e. The monetary base will fall.
Which statement is true?
A. During very bad recessions and depressions the total of our frictional and structural unemployment rates is greater than our cyclical unemployment rate. B. When our overall unemployment rate declines, most of this decline is due to falling structural and frictional unemployment. C. Cyclical unemployment is generally zero. D. The sum of the frictional and structural unemployment rates is 5 percent.