The present value of $1,500 received 8 years in the future would be calculated as which of the following when the interest rate is 3%?
A) 1,500/(1.03)8 B) 8.03/1,500 C) 1,500 × 1.3 × 8 D) 1,500/(1.3)8
A
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A price ceiling is a legal minimum on the price at which a good or service can be sold
a. True b. False Indicate whether the statement is true or false
In the circular flow model, households:
a. Buy products and sell resources b. Sell products and buy resources c. Buy products and resources d. Sell products and resources
Exhibit 6-3 Unemployment categories CategoryWorkers Frictional unemployment250 Structural unemployment350 Cyclical unemployment600 Discouraged workers400 Underemployment450 According to data in Exhibit 6-3 and assuming the total number of workers is 8,400, the unemployment rate is:
A. 5 percent. B. 15 percent. C. 16 percent. D. 24 percent.
Given the limits of international cartel power, one alternative for a developing country to put upward pressures on the world prices of its primary product exports is to
A. tax its primary-product exports. B. impose tariffs on primary-product imports. C. subsidize its manufacturing imports. D. subsidize its primary product exports.