If the interest rate is 10%, then $1 received one year from now is worth how much today?
A) $1.10
B) $1.00
C) $0.91
D) $0.90
C
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Specialization can sometimes create problems such as boredom and repetitive motion injuries
a. True b. False
If the price elasticity of demand is 1.5, regardless of which two points on the demand curve are used to compute the elasticity, then demand is
a. perfectly inelastic, and the demand curve is vertical. b. elastic, and the demand curve is a straight, downward-sloping line. c. perfectly elastic, and the demand curve is horizontal. d. elastic, and the demand curve is something other than a straight, downward-sloping line.
According to the law of demand, when the price of shoes ________, people will consume ________ shoes.
A. rises; more B. falls; the same amount C. rises; the same amount D. falls; more
In general, an increase in the price of a good:
A. will cause both an income and substitution effect. B. usually will have no effect. C. will cause the income effect to be bigger than the substitution effect. D. will cause the substitution effect to be bigger than the income effect.