The present discounted value of $100 to be received in one year and with an interest rate of 10 percent is closest to
a. $100
b. $10
c. $110
d. $91
e. $80
D
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A rise in the real interest rate r
a. creates income and substitution effects that reduce C0. b. creates income effects that reduce C0, substitution effects that increase C0. c. creates income effects that increase C0, substitution effects that reduce C0. d. creates income and substitution effects that increase C0.
The two theoretical extremes of the market structure spectrum are occupied at one end by perfect competition and on the other end by monopoly
a. True b. False Indicate whether the statement is true or false
If entry-restricting legal barriers effectively organized the funeral home industry of a large city into a monopoly cartel, economic theory indicates that, compared to the previously competitive situation,
a. the price of funeral services would decline, and output would increase. b. both the price and output of funeral services would decline. c. the price of funeral services would increase, and output would decline. d. both the price and output of funeral services would increase.
Data for an economy shows that the unemployment rate is 10 percent, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?
A. 800 million B. 250 million C. 1.6 billion D. 1.0 billion