Of the following interest rates, which is the highest one at which the present value of $200 ten years from today is greater than $150?
a. 2 percent
b. 4 percent
c. 6 percent
d. 8 percent
a
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How are the slope of a production possibilities frontier and the opportunity cost of the goods related?
A. The slope is a graphical representation of the cost of expanding production of both goods. B. The slope is a graphical measure of the growth rate of the economy. C. The slope is a graphical representation of the cost of decreasing unemployment. D. The slope is a graphical representation of the rate of trade-off between the goods. E. The slope is a graphical representation of the cost of economic growth in the economy.
When demand for labor is highly inelastic, many workers lose their jobs when the minimum wage is raised
Indicate whether the statement is true or false
As the dollar depreciates, which of the following is most likely to occur?
a. More Americans will travel abroad. b. American imports will rise. c. More foreigners will visit the United States. d. American firms will increase their investments abroad.
When the quantity effect outweighs the price effect:
A. a price increase will cause an increase in total revenue. B. a price increase will cause a decrease in total revenue. C. a price decrease will cause a decrease in total revenue. D. None of these is true.