What is the present value of a payment of $1,000 two years from now if the interest rate is 6%?
a. $2,000/1.06
b. $1000/(1.06)2
c. $1000/(1 + 0.062)
d. None of the above are correct.
b
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Because of the large number of firms that operate in the agricultural industry, the supply of agricultural products is inelastic over the entire range of output
Indicate whether the statement is true or false
The invisible hand of the marketplace acts to allocate resources
a. efficiently but does not necessarily ensure that resources are allocated fairly.
b. both fairly and efficiently.
c. fairly but does not necessarily ensure that resources are allocated efficiently.
d. neither fairly nor efficiently.
When demand is unit elastic, a 7 percent change in the price of the good
A. will cause a change in quantity demanded greater than 7 percent. B. will not cause any change in quantity demanded. C. will cause a change in quantity demanded equal to 7 percent. D. will cause a change in quantity demanded of less than 7 percent.
All of the following are examples of spending on goods and services in the circular flow model except
A) Amanda purchases a new electric guitar to pursue her hobby seriously. B) Chaitanya buys a new spa pedicure chair for her expanding nail salon business. C) Hernan buys a pizza at Papa C's. D) Lenny buys a new digital camera to take pictures at his son's graduation.