Given an annual interest rate of 5 percent, what is the present value of receiving $2,000 in one year?
A) $1980.19
B) $1950.25
C) $1934.89
D) $1,904.76
D) $1,904.76
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__________ buy or sell futures contracts to reduce their exposure to the risk of future price movements in the underlying asset
A) Hedgers B) Speculators C) Arbitrageurs D) None of the above.
The value of a price index in the base year will always be zero
a. True b. False Indicate whether the statement is true or false
Equilibrium price must increase when demand
a. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. b. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. c. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. d. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.
The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that:
A. all industries will claim that they are infant industries in order to gain protection. B. the protected industry will become too efficient and drive out foreign competition. C. once in place, it is difficult to remove protection even as the industry matures. D. it causes the goods that are produced in the protected industry to have lower prices.