If you put $100 into a bank account that earns five percent interest per year, what is the formula you should use to determine the account's future value in one year?
A) Future value = [Present value × (1 + i)] B) Future value = (Present value × i)
C) Future value = (Present value / i) D) All of these yield the same answer.
A
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When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions
A) "when" B) "for whom" C) "what" D) "where"
Money includes
A) currency. B) checking deposits held by households and firms. C) deposits in the foreign exchange markets. D) currency and checking deposits held by households and firms. E) futures and deposits in the foreign exchange market.
The purchasing power parity theory helps explain long-run trends in exchange rates, but not short-run fluctuations
a. True b. False
Which of the following ideas is illustrated by the production possibilities curve [PPC]?
a. There are no limits on the total production feasible in an economy. b. An economy need not decrease the production of one commodity to increase the production of another. c. It is possible to satisfy unlimited wants in an economy through proper investment in research and development. d. When an economy chooses to produce a combination of goods and services, other combinations of goods and services are sacrificed. e. An economy can specialize in the production of only one good.