Given the market rate of interest, the present value of $10,000 to be received after a period of 5 years
A. will be more than the present value of $10,000 to be received after a period of 4 years.
B. will be less than the present value of $10,000 to be received after a period of 6 years.
C. will be more than the present value of $10,000 to be received after a period of 6 years.
D. will be the same as the present value of $10,000 to be received after a period of 6 years.
C. will be more than the present value of $10,000 to be received after a period of 6 years.
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According to the textbook application, the EPA reported in 1993 that
a. secondhand smoke was a carcinogen b. secondhand smoke was prohibited from public places c. secondhand smoke did not pose a human health risk d. none of the above
Which of the following statements is not correct?
a. Reducing taxes on interest income might encourage people to save more. b. Reducing taxes on interest income might reduce saving. c. A price increase will create income and substitution effects that will both always work to reduce consumption of the good. d. Utility is maximized when the marginal rate of substitution between any two goods equals the relative prices of the two goods.
Which of the following is NOT a characteristic of monopolistic competition?
A. advertising B. large number of sellers C. differentiated products D. barriers to entry
Only in the case of perfectly inelastic demand will consumers pay the full amount of a specific tax or ad valorem tax
Indicate whether the statement is true or false