Suppose a bank will pay you a 10% interest rate on your deposits for 1 period. In this case you must sacrifice $10 of current consumption to finance
A. $1 of future consumption.
B. $11 of future consumption.
C. $10 of future consumption.
D. $9 of future consumption.
Answer: B
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Which of the following is considered a contributive standard for the distribution of income?
A) rewarding workers according to their productivity B) rewarding workers according to their needs C) rewarding workers according to the number of their dependents D) all of the above
Look at the following data: GDP = $3,590 billion; consumption = $1,820 billion; exports = $450 billion; investment = $1,250 billion; government purchases = $900 billion. Imports is equal to __________ billion.
A. $830 B. $1,460 C. -$830 D. $1,240 E. none of the above
The general formula used for calculating the net national loss from a trade barrier as a percentage of gross domestic product (GDP) may fail to account for
A. the rent-seeking costs of local firms. B. the production effect of the trade barrier. C. the government revenue generated from the trade barrier. D. the consumption effect of the trade barrier.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the ________ advantage in the production of tablets, which means they should specialize in ________.
A. comparative; iPods B. absolute; tablets C. absolute; iPods D. comparative; tablets