As the interest rate increases, the present value of a future payment
A) increases.
B) decreases.
C) does not change.
D) approaches infinity.
B
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The statement "This Dell laptop costs $1,200" illustrates which function of money?
A) store of value B) standard of deferred payment C) unit of account D) medium of exchange
In the above figure, if d1 is the relevant demand curve for this firm, then which level of output will maximize this firm's profits or minimize its losses?
A) A B) B C) C D) D
In making a production decision, a business owner:
A.) Decides whether to enter or exit the market. B.) Makes a long-run decision about output and revenues. C.) Decides whether to buy or lease new plant and equipment. D.) Decides the short-run rate of output.
Suppose Country A, a labor-abundant country, produces only wheat and cloth. The following equations illustrate the prices and costs of wheat and cloth in the country. The numbers indicate the amounts of labor and land needed to produce a unit of wheat and cloth. 'W' is the wage rate and 'r' is the rental rate of land.Price of wheat = 1w + 2rPrice of cloth = 2w + 1rSuppose Country A engages in free trade and the price of cloth increases to $4 per unit. However, the price of wheat remains unchanged. Under such a situation, the Stolper-Samuelson theorem will predict that
A. the purchasing power of both the landowners and the laborers will increase. B. the purchasing power of the laborers will increase but that of the landowners will decline. C. the real income of both the landowners and the laborers will decline. D. the real income of the landowners will increase but that of the laborers will remain unchanged.