Mr. Smith earned a salary of $5,000 in in 1980 while his son earned a salary of $8,000 in 2010. If the price index for 1980 was 100 and that for 2010 was 198, whose salary was worth more? Explain your answer
What will be an ideal response?
In order to find out whose salary was higher, we need to convert Mr. Smith's salary into 2010. The value of Mr. Smith's salary in 2010 can be obtained by using the formula:
Value in 2010 = (Price Index for 2010 / Price Index for Year
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Montana cattle ranchers are complaining about mountain state sheep ranchers whose animals are eating too much grass on the open range. The sheep ranchers claim that the cattle are eating too much of the grass. This is an example of
a. an external benefit. b. the reciprocal nature of externalities. c. the principal agent problem. d. a situation in which strict liability would be the more efficient solution.
Refer to the Article Summary. If the 12 nations that are a part of the TPP do not agree to these stricter pharmaceutical patent laws as a way to increase intellectual property rights and ignore any international agreements which do protect these
intellectual property rights, which of the following would most likely occur? A) More patents would be issued to pharmaceutical companies. B) Pharmaceutical companies would consider expanding operations to these TPP nations. C) More dollars would be spent on the development of new medicines. D) Pharmaceutical companies would decrease investment in the development of more experimental drugs.
Which of the following statements is true?
A) The expected return and standard deviation of return are greater for common stock than for U.S. Treasury bills. B) The expected return on common stocks is greater than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is less than the standard deviation of return for U.S. Treasury bills C) The expected return on common stocks is less than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is greater than the standard deviation of return for U.S. Treasury bills. D) The expected return and standard deviation of return are less for common stocks than for U.S. Treasury bills.
Since the War on Poverty was started in 1965, the United States has spent more than $12 trillion on income maintenance programs. The effect has been to
A) reduce poverty levels substantially. B) reduce poverty levels moderately. C) have virtually no effect on poverty levels. D) increase poverty substantially.