Suppose $100 is deposited in a bank account paying 5% compounded annually. If the interest earned is X after 5 years, then the interest earned will be 2X after 10 years
Indicate whether the statement is true or false
False. Because of compounding, the balance on which interest is earned grows over time. Thus, the interest earned in years 6 to 10 will exceed the interest earned in years 1 to 5.
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Which of the following creates difficulties in making comparisons of real GDP across nations?
A) Each nation has a different population. B) Relative prices differ sharply across countries. C) Nations produce different goods and services. D) Nations often have different languages.
Increasing the stock of capital while holding the labor force constant will ________ output at a(n) ________ rate
A) decrease; increasing B) increase; increasing C) increase; decreasing D) decrease; decreasing
The government makes all economic decisions in a mixed economy
Indicate whether the statement is true or false
Owning a patent can provide a firm with monopolistic power
a. True b. False Indicate whether the statement is true or false