Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, if you earn a salary of $40,000 in the first year and all prices are cut in half in the next year. How will this affect the time it takes to pay off your school loans, assuming that you put all your earnings into paying it off? Assume that your debt is $40,000.
A. It will cut the payoff time to 1/3 of the original time.
B. It will cut the payoff time to 1/2 of the original time.
C. It will cut the payoff time to 2/3 of the original time.
D. It will double your payoff time.
Answer: B
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Average total cost is
A) total explicit costs divided by the quantity of output produced. B) total cost divided by the quantity of output produced. C) the change in fixed plus variable cost divided by the quantity of output produced. D) variable cost divided by the quantity of output produced.
Utilitarians believe
a. that the government should choose just policies as evaluated by an impartial observer behind a "veil of ignorance.". b. in the assumption of diminishing marginal utility. c. that everyone in society should have equal utility. d. that the government should not redistribute income.
Exchange rates are 100 yen per dollar, 0.8 euro per dollar, and 12 pesos per dollar. A bottle of beer in New York costs 6 dollars, 500 yen in Tokyo, 6 euro in Munich, and 84 pesos in Cancun. Where is the most expensive and the cheapest beer, in that order?
a. Cancun, New York b. Munich, Tokyo c. Tokyo, Munich d. New York, Cancun
To adjust nominal GDP for a given year to obtain real GDP, it is necessary to divide nominal GDP by the price index (expressed in hundredths) for that year.
Answer the following statement true (T) or false (F)