Discounting refers directly to
a. finding the present value of a future sum of money.
b. finding the future value of a present sum of money.
c. calculations that ignore the phenomenon of compounding for the sake of ease and simplicity.
d. decreases in interest rates over time, while compounding refers to increases in interest rates over time.
a
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A jurisdictional dispute means that
A) members of a union disagree on the outcome of union elections. B) a higher court reversed the decision of a lower court in a case brought by a union. C) a union leadership and membership cannot agree on an issue. D) two unions disagree on which should represent workers in a particular industry.
A natural gas monopoly currently sells 100 cubic feet of gas at $1.10 per cubic foot. To sell one more cubic foot, the natural gas company must lower the price of gas to $1.09 . Which of the following best describes the marginal revenue of the 101st cubic foot of natural gas? a. The marginal revenue equals the price, or $1.09
b. The marginal revenue equals the change in price, or $ 0.01. c. The marginal revenue is less than $1.09. d. The marginal revenue is greater than $1.09.
The largest income component in the national income accounts is
a. wages. b. rents. c. corporate profits. d. interest.
Related to the Economics in Practice on page 214: According to the Economics in Practice, firms where managers had ________ extensive training became ________ productive than firms where managers had no training.
A. less; more B. more; more C. more; no more D. less; no less