Assuming the interest rate is 5 percent, which of the following has the greatest present value?
a. $240 paid in three years
b. $225 paid in two years
c. $210 paid in one year
d. $200 today
a
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If the automobile workers' union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?
A) The supply increases. B) The supply decreases. C) The quantity supplied increases. D) The quantity supplied decreases. E) Both answers B and D are correct.
What is an economic variable?
What will be an ideal response?
Which one of the following describes the current state of economic development in the United States?
A) The United States is running out of natural resources, and therefore it will soon experience a drop in the rate of economic growth. B) Employment is declining in the manufacturing sector and growing in the service sector. C) Employment is declining in the manufacturing sector and growing in the agricultural sector. D) The lack of well-defined property rights in the United States means that entrepreneurs do not expect to capture the benefits of innovations they bring to the marketplace.
Answer the following statement true (T) or false (F)
1) Nonrenewable natural resources are fixed in supply (actually or virtually). 2) Assuming that interest rates are positive, the present value of an $80 barrel of oil in two years is less than an $80 barrel today. 3) Present value allows us to weigh the benefits and costs of using resources today or in the future. 4) The user cost of a resource is the market price paid by the buyer of the resource.