Suppose Paul borrows $4,000 for one year from his grandfather who charges Paul 7% interest. At the end of the year Paul will have to repay his grandfather:
A. $4,280
B. $4,820
C. $4,290
D. $4,350
Answer: A
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When production in an economy grows more quickly than the population in that economy, which of the following must be occurring?
A) Incomes are growing at a slower rate than the population. B) Real GDP per capita is rising. C) Living standards are falling. D) Real GDP is falling.
In the base year, the relationship between nominal and real GDP is
a. uncertain. b. one of equality. c. real GDP is higher. d. nominal GDP is higher.
The incentive to work is an ingredient of the negative income tax because
a. if families do work, they will be eliminated from the program b. if families don't work, they will be eliminated from the program c. the more income earned in the workplace, the higher the family's after-tax income d. the more income earned in the workplace, the higher the payment from the government e. the amount earned in the workplace is not subject to income taxes
The efficient markets hypothesis says that
a. only individual investors can make money in the stock market. b. it should be easy to find stocks whose price differs from their fundamental value. c. stock prices follow a random walk. d. All of the above are correct.