Which of the following is true?
A) Compound interest means that you are earning interest on the principal but not prior interest earned.
B) All of the above are true.
C) The law of compound interest highlights the importance of beginning to save at a young age.
D) Assume a 7 percent rate of interest and a price of $6 per pack of cigarettes. Smoking one pack of cigarettes per day for 50 years will cost the smoker $109,500 (=$6 365 days50 years).
C) The law of compound interest highlights the importance of beginning to save at a young age.
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The manager of a perfectly competitive firm has to decide:
A) the quantity of output the firm should produce. B) the price the firm should charge for its output. C) the quantity of output the firm should produce and the price it should charge. D) neither the quantity of output the firm should produce nor the price it should charge because the market makes both of these decisions.
Refer to Scenario 17.5. Under which of the following payment schemes would workers have an incentive to exert high effort?
A) A guaranteed wage equal to $0 B) A guaranteed wage equal to $5000 C) A guaranteed wage equal to $10,000 D) A wage equal to the income earned, minus $4000 E) A wage equal to $0 if revenue is $5000, $2000 if revenue is $7000, and $8000 if revenue is $13,000
If quantity demanded for rice falls by 2% when price increases 8%, we know that the absolute value of the own-price elasticity of rice is:
a. 2.5. b. 0.25 c. 4.0 d. 0.40.
Answer the following statements true (T) or false (F)
1. The slope of a graph relating two variables is -5. This indicates that as one variable decreases, the other variable also decreases. 2. In the graph for the linear equation S = 15 - 5T, with T on the horizontal axis, the vertical intercept of the graph is -5. 3. In a curved graph that is dome-shaped, the tangent line at it maximum or highest point has an infinite slope. 4. A market system is characterized by the private ownership of resources and the use of prices to coordinate economic activity.