If the interest rate is 10 percent, the present value of $400 to be received one year from today is about
A) $440.
B) $390.
C) $364.
D) $377.
C
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If marginal revenue equals zero, then demand at this level of output is
A) perfectly inelastic. B) inelastic. C) unit elastic. D) elastic.
Which of the following countries has a low level of trade by world standards but has typically shown large trade surpluses in recent decades?
a. United States b. Brazil c. Japan d. France
A consumer spends less time searching for a good when her reservation price is:
A. fixed. B. increased. C. reduced. D. None of the answers are correct.
Assume that a 6 percent increase in income in the economy produces a 3 percent increase in the quantity demanded of good X. The coefficient of income elasticity of demand is:
A. negative and therefore X is an inferior good. B. positive but less than one; therefore X is an inferior good. C. positive and therefore X is an inferior good. D. positive and therefore X is a normal good.