With a nominal interest rate of 5%, the present discounted value of $100 to be received in two year is
A) $90.00.
B) $90.70.
C) $95.23.
D) $110.00.
B
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Why does the presence of imperfect information lead to inefficiency?
What will be an ideal response?
Suppose new drilling techniques increase the world oil supply. In the long run, output will _________ and the price level will _________.
Fill in the blank(s) with the appropriate word(s).
If the elasticity of demand is -2.3 when calculated using the point elasticity method and -3.4 using the arc elasticity method, then
A) you should use the point elasticity. B) it is OK to use either one. C) there must be a mistake in the calculations. D) you should use the arc elasticity.
Happy Cows contractually requires distributors who purchase Happy Cows' milk to also purchase Happy Cows' cream. The legality of the practice will be evaluated under Section ________ of the Clayton Act.
A) 7 B) 8 C) 2 D) 3