Assume the current interest rate is 20%. The present value of $900 in one year would be
A. $180.
B. $450.
C. $750.
D. $1,080.
Answer: C
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Opportunity cost is best defined as the value of
A. all of the other possible options that the decision maker could have chosen. B. the alternative which the decision maker would choose if more resources were available. C. what is gained from the alternative which is chosen. D. resources that are given up to attain the alternative that is chosen. E. the next best alternative that the decision forces one to give up.
Which of the following is likely to have the most price inelastic demand?
a. white chocolate chip with macadamia nut cookies b. Mrs. Field's chocolate chip cookies c. milk chocolate chip cookies d. cookies
Which of the following is inherent in the classical view of a self-adjusting economy?
A. Flexible prices and wages B. Inflexible prices and wages C. Instability D. Economic growth dependent on Innovation Theory E. Government spending to stimulate aggregate demand
An exchange rate is the number of units that buys one unit of another currency.
a. true b. false