When the rate of interest is 10 percent, the present value of $100 payable in two years is approximately
A. $80.
B. $110.
C. $100.
D. $83.
Answer: D
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Which of the following is not a common mistake made by consumers?
A) the failure to ignore sunk costs B) being overly pessimistic about their future behavior C) the failure to take into account the implicit costs of an activity D) being overly optimistic about their future behavior
Investment demand is downward sloping because as the interest rate decreases,
A) each project's internal rate of return decreases. B) each project's internal rate of return increases. C) more projects will have an internal rate of return that exceeds the interest rate. D) more projects will have an internal rate of return that is less than the interest rate.
The following is not associated with bid-rigging
a. bid-riggers bidding their true value b. "knockout" auctions c. bid rotations d. amnesty to the first conspirator willing to testify against fellow conspirators
It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. Operators of hydroelectric generating plants on the river find they must clean up the river's water before it flows through their equipment. Refer to the above information. Which of the following policies would be most appropriate for dealing with this problem?
A. Levy a tax on the producers of electricity and use the tax revenues to clean up the river. B. Levy a tax on the consumers of electricity and use the tax revenues to subsidize the consumers of paper goods. C. Levy a tax on the producers of paper goods and use the tax revenues to clean up the river. D. Levy a tax on the consumers of paper goods and use the tax revenues to conduct research on new energy sources.