Suppose you win the lottery and one of your payment options is to receive $20,000 today, $20,000 one year from now, and $20,000 two years from now. If the interest rate is 5%, what is the present value of this option?
a. $51,830.26
b. $54,464.96
c. $57,188.21
d. $58,237.71
c
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A monopolist, unlike a perfect competitor, has total control in its market because it is the single producer. Why, then, must a single-price monopolist decrease its price if it wants to increase its output?
What will be an ideal response?
If Matt Taylor gets his $800 loan from the Paris First National Bank in cash rather than in the form of a new checkable deposit, the:
a. Paris First National Bank will get $800 in new reserves. b. Paris First National Bank will not get $800 in new reserves. c. assets of the Paris First National Bank will increase by $800. d. assets of the Paris First National Bank will decease by $88. e. liabilities of the Paris First National Bank will increase by $800.
Planned investment is the:
A. amount that firms decide to allocate to inventory accumulation. B. spending households engage in based on forecasted budget. C. investment that a firm decides upon as a result of temporary market changes. D. amount that firms decide to allocate to new capital resources and inventory accumulation.
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. A bundle of goods that Country A could not make would be:
A. (500 iPods, 150 tablets). B. (500 iPods, 200 tablets). C. (500 iPods, 300 tablets). D. (500 iPods, 250 tablets).