What is the present value of $5,000 to be received in one year if the current market interest rate is 6.0%?
a. $3,125
b. $4,717
c. $4,923
d. $5,300
b
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A price floor (support price) set above equilibrium:
a. is a minimum legal price set by government above equilibrium. b. causes the quantity supplied to exceed the quantity demanded. c. creates a surplus. d. can represent the effect of a minimum wage. e. all of these.
Without controlling for differences in natural resources and technological knowledge, diminishing returns can explain the entire difference in economic growth rates for China and the United States
a. True b. False Indicate whether the statement is true or false
If the price level falls, the real value of a dollar
a. rises, so people will want to buy more. This response helps explain the slope of the aggregate demand curve. b. rises, so people will want to buy more. This response shifts aggregate demand to the right. c. falls, so people will want to buy less. This response helps explain the slope of the aggregate demand curve. d. falls, so people will want to buy less. This response shifts aggregate demand to the left.
The suburbanization of America _______________ the United States' dependence on oil imports.
A. increased substantially B. had no effect C. decreased substantially