If the interest rate is 5%, the current market value of $1 to be delivered in one year is
A. $0.91.
B. $0.95.
C. $1.00.
D. $1.10.
Answer: B
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
If the annual interest rate is 0%, the net present value of receiving $550 in the next year is
a. $550 b. $551 c. $549 d. $500
Marginal cost:
A. increases then decreases, as output increases, to reflect marginal product. B. is calculated as change in total output divided by change in total cost. C. is calculated as change in total cost divided by change in total output. D. None of these is true.
Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsFulton Family Farm$0.500DeLux Popcorn Co.$2.50$0.50Friendly Groceries$4.00$2.50 What is the value added of Friendly Groceries?
A. $3.50 B. $2.50 C. $1.50 D. $4.00