The present value of $120 to be received one year from now
A) is $120.
B) is $100.
C) is $121.
D) depends on the rate of discount.
Answer: D
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In the determination of economic growth, political freedom
A) is equally as important as economic freedom. B) contributes little to job growth. C) appears to be less important than economic freedom. D) is more important than economic freedom.
An increase in total revenue will result if
A) demand is inelastic and price decreases. B) demand is elastic and price decreases. C) demand is elastic and price increases. D) demand is unitary elastic and price increases.
The best example of a frictionally unemployed worker is one who: a. has been looking for work for 27 weeks or longer
b. is laid off during a recessionary period in the economy. c. is in the process of voluntarily switching jobs. d. is discouraged and not actively seeking work. e. cannot find a job that matches with his skills.
The government wants to improve the irrigation system for farmers by setting up wells. The farmers, in return, would have to pay a sum of $100 each. Many farmers are aware that even if they do not pay, other farmers will pay for it and the required sum of money would easily be collected. This problem can be avoided by: a. taking the help of the law
b. forming an association and putting social pressure to make sure all the farmers pay. c. imposing an extra tax on the farmers who do not pay for the irrigation system. d. preventing all the farmers from using the well.