The correct formula that relates present value (PV) to future value (FV), if interest rate is i% per year over n years is:
A. PV = FV (1 + i)n
B. FV = PV (i)n
C. PV = FV/(1 + i)n
D. FV = PV (1 + i) (n)
C. PV = FV/(1 + i)n
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Studies on fast-food stores in Texas and New Jersey suggest that the federal minimum wage law
A. has huge ramifications on unemployment. B. does not have a discernable impact on unemployment. C. causes unemployment for high skilled workers. D. new entrants to the work force search for longer periods.
Refer to Figure 13.2. If Oliver's political views place him at the L4 position and George's political views place him at the C4 position, the winner of the election will be
A) Oliver Cousins. B) George Glass. C) The vote will end in a tie. D) It is uncertain who will win this election.
Most recessions in the United States since World War II have begun with a
A) rise in oil prices. B) stock market crash. C) a major devaluation of the dollar. D) decline in residential construction.
The process by which sellers send signals to buyers conveying information about product quality is known as:
A) asymmetric information. B) market signaling. C) a lemons problem. D) moral hazard.