What is the present value of $500 to be received eight years from now if the interest rate is 5 percent?
A. $300.
B. $338.42.
C. $700.
D. $738.72.
B. $338.42.
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From the social perspective, a major criticism of oligopolies is that
A) successful collusion leads to a monopoly-like outcome. B) price wars usually break out. C) advertising hardly ever occurs. D) cartels are unstable.
When an economy is operating at full employment, _____
a. structural unemployment does not exist b. cyclical unemployment does not exist c. the unemployment rate is zero d. seasonal unemployment does not exist e. the number of discouraged workers is zero
In which of the following years was inflation in the United States the highest?
a. 1960. b. 1970. c. 1980. d. 1990. e. 2007.
If consumers view cappuccinos and lattes as substitutes, what would happen to the equilibrium price and quantity of lattes if the price of cappuccinos rises?
A) Both the equilibrium price and quantity would increase. B) Both the equilibrium price and quantity would decrease. C) The equilibrium price would increase, and the equilibrium quantity would decrease. D) The equilibrium price would decrease, and the equilibrium quantity would increase.