According to the concept of present value, a $50 barrel of oil today is worth:
A. less than a $50 barrel in 2 years.
B. more than a $50 barrel in 2 years.
C. the same as a $50 barrel in 2 years.
D. the same as a $50 barrel in 2 years, but only if there is no inflation during those 2 years.
Answer: B
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In a closed economy, private saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y + TR - C - T B) Y - C - T C) Y - G - T + TR D) Y - G - T
Imperfectly competitive firms have a demand curve that ________ and a marginal revenue curve that ________ and is ________ the demand curve
A) slopes downward; slopes downward; below B) is horizontal; is horizontal; the same as C) slopes downward; is horizontal; above D) is horizontal; slopes downward; below E) slopes downward; slopes downward; the same as
With regard to the characteristics of production indifference curves, which of the following statements is/are NOT true?
A. Higher curves correspond to larger outputs. B. An indifference curve will generally have a negative slope. C. An indifference curve is typically assumed to curve inward toward the origin near its middle. D. All of the responses are true for production indifference curves.
For a cartel to work, demand for the cartel's product must be
A. inelastic. B. perfectly elastic. C. elastic. D. unit elastic.