What is the present value of $100 three years from now at an interest rate of 5%?
A) $85
B) $115.76
C) $90.70
D) $86.38
Answer: D
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When productivity growth has been rapid and then slows, the natural rate of unemployment is likely to ________
A) decrease B) be unaffected C) increase D) vary unpredictably
What is the most likely effect of the development of cell phones on the pay phone industry?
a. the own price elasticity of pay phones increases b. the own price elasticity of pay phones decreases c. the price elasticity of home phones does not change d. none of the above
A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price higher than the original equilibrium b. A market equilibrium price lower than the short run price c. Some firms exiting the market d. All of the above
If the value of the price elasticity of demand is 0.2, this means that:
A. a 20 percent decrease in price causes a 1 percent increase in quantity demanded. B. a 0.2 percent decrease in price causes a 1 percent increase in quantity demanded. C. a 5 percent decrease in price causes a 1 percent increase in quantity demanded. D. a 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded.