A sum of money received at a future date is worth less than the same sum of money received today. Why? Explain this with an example
A dollar obtainable sooner is worth more than a dollar obtainable later because of the interest that can be earned on that dollar in the interim. A person with $100 in his hand, if the annual rate of interest were 10 percent, could lend it out and receive $110 in a year's time. For this reason, money received today is worth more than the same number of dollars received later.
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If a firm is willing to supply the 1,000th unit of a good at a price of $23 or more, we know that $23 is the
A) highest price the seller hopes to realize for this output. B) minimum price the seller must receive to produce this unit. C) average price of all the prices the seller could charge. D) price that sets the marginal benefit equal to the price. E) only price for which the seller is willing to sell this unit of the good.
The official rate of unemployment is based on a(n)
a. door-to-door survey. b. telephone survey. c. employer survey. d. payroll survey.
Under a system of free, competitive markets,
A. a society can usually achieve efficiency only at the expense of equality. B. poverty cannot exist in the long run. C. employers do not practice statistical discrimination. D. income is distributed equally across the population.
When a nation's currency appreciates, it purchases ___ units of a foreign currency and its currency is said to__
a. fewer; strengthen b. more; strengthen c. fewer; weaken d. more; weaken