What is the present value of receiving $$200 a year indefinitely if the interest rate is 8%?
a. $1250
b. $1750
c. $2500
d. $2750
c
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Suppose a decrease in the supply of wheat results in an increase in revenue. This indicates that
A) the demand curve for wheat must be vertical. B) the resulting increase in price is proportionately greater than decrease in quantity sold. C) the decrease in quantity sold is proportionately larger than the resulting change in price. D) the supply curve for wheat must be vertical.
The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed. Why did this occur?
A) Capital per hour worked grew rapidly from 1950 to 1980, but technological change occurred very slowly. B) Increasing implementation of new technologies eventually suffered diminishing marginal returns. C) Capital per hour worked grew slowly, but technological change grew very rapidly. D) The centrally planned economy invested too heavily in technological change.
In the medium run of a few months or a few years, exchange rate markets are influenced by ________________ rates.
a. labor b. production c. growth d. inflation
As one moves down a straight-line demand curve, the elasticity increases
a. True b. False Indicate whether the statement is true or false