A lender is promised a $100 payment (including interest) one year from today. If the lender has a 6% opportunity cost of money, he/she should be willing to accept what amount today?
A. $100.00
B. $94.34
C. $106.20
D. $96.40
Answer: B
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Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall. Holding everything else constant, how would this affect the market for wheat (a substitute for corn)?
A) The demand for wheat would decrease and the equilibrium price of wheat would decrease. B) The demand for wheat would increase because consumers could afford to buy more wheat and corn. C) The demand for wheat would decrease and the equilibrium price of wheat would increase. D) The supply of wheat would increase and the equilibrium price of wheat would decrease.
Stan Laurel and Oliver Hardy acted separately in comedy shorts for the Hal Roach Studio for over a decade without greatly distinguishing themselves from hundreds of other screen comedians. Then in 1927, Roach writer-director Leo McCarey tried them out as a comedy team in one more routine short. Only then was the fantastic chemistry between "the fiddle and the bow" realized. The rest is
immortality. This story relates to the "new growth theory" idea of A) employee involvement. B) rearranging. C) exogeneity. D) objects and ideas.
A result of the Asian Crisis of 1997-1998 was
A. A major increase in the level of U.S. exports to Southeast Asia. B. Political stability in many Southeast Asian countries. C. An increase in the value of the U.S. dollar relative to Southeast Asian currencies. D. An increase in the value of Southeast Asian currencies relative to the U.S. dollar.
Which of the following is true of monopolistic competition but is not true of perfect competition?
a. Each firm distinguishes its product from that of its competitors. b. The firm engages in marginal cost pricing. c. The firm produces at the point where average total cost is minimized. d. There are significant barriers to the entry of new firms in the industry.