If Sam's $800 earns him a 6 percent rate of interest, each year he receives
a. $480
b. $48
c. $4.80
d. $80
e. $75
B
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To raise economic development, developing countries should
A. focus on their comparative advantage. B. produce goods that are capital intensive and not labor intensive. C. not focus on economic growth. D. focus on producing service goods.
David Ricardo, a nineteenth-century economist, wrote, "The price of corn is high not because a rent is paid, but a rent is paid because the price of the corn is high." Which of the following correctly explains Ricardo's assertion?
A. The high rents landowners charge tenant farmers cause high corn prices B. If landowners weren't so greedy and lowered the rents they charge tenant farmers, the price of corn would fall C. If the price of corn rises because of increased demand for corn, land rents will rise to absorb most of the extra revenue received by tenant corn farmers D. If the price of corn rises, all other things being equal, increases in rent will cause some tenant farmers to stop growing corn
The Federal Reserve discount rate is the rate of interest charged on loans from ________ to ________.
A. the U.S. Treasury; commercial banks B. commercial banks; the Federal Reserve C. the Federal Reserve; commercial banks D. the Federal Reserve; the U.S. Treasury
All individuals, even Bill Gates, must select among alternative goods because of
A) pollution. B) global warming. C) scarcity. D) poverty.