The present discounted value of $100 to be received one year from now, if the interest rate is 2.5 percent, is closest to
A. $98.
B. $95.
C. $103.
D. $100.
Answer: A
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A. an increase in the value of land you own when a nearby development is completed B. the costs paid by a company to build an automated factory C. the higher price you pay when you buy a heavily advertised product D. falling property values in a neighborhood where a disreputable nightclub is operating
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What will be an ideal response?
When actual output equals potential output and the inflation rate is stable, the economy is said to be in ________ equilibrium.
A. contractionary B. short-run C. expansionary D. long-run
Which of these is NOT a potential benefit provided by monopolies?
a. more variety of creative works such as movies and books b. greater incentives to develop new technologies and medical cures c. increased consumer surplus as a result of a smaller scale of operations d. lower prices in industries with very large economies of scale