A local government can spend $800 today on a project that will yield $968 of benefits two years from today.
(i) If the interest rate is 4%, what is the present value of the project?
(ii) For what interest rates would it be beneficial for the government to pursue the project?
(i) The present value of the project is
(ii) Solve the inequality 
to show that the project has a positive present value whenever the interest rate (which is assumed to be positive) is less than 10%.
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The growing popularity of energy conservation has enticed large home improvement stores like Home Depot and Lowes to offer tankless water heaters
How does the fact that home improvement stores now offer these products affect the tankless water heater market? A) The demand curve for tankless water heaters shifts to the left. B) The supply curve for tankless water heaters shifts to the left. C) The supply curve for tankless water heaters shifts to the right. D) The demand curve for tankless water heaters shifts to the right.
During recessions employment typically
a. falls substantially. As the recession ends, employment rises rapidly. b. rises substantially. As the recession ends, employment declines gradually. c. falls substantially. As the recession ends, employment rises gradually. d. rises substantially. As the recession ends, employment declines rapidly.
In which step of the demographic transition would we expect population to grow the fastest?
A. Step 1. B. Step 2. C. Step 3. D. There is no step that would be expected to consistently yield faster population growth.
A reduction in the minimum wage will tend to cause which of the following?
A) a reduction in poverty B) an increase in the number of workers employed C) an increase in the quantity supplied of labor D) a reduction in the quantity demanded of labor