If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth
A) more than $500,000 today.
B) $500,000 today.
C) less than $500,000 today, but a positive amount.
D) nothing today
E) some amount, but whether it is more, less or the same as $500,000 cannot be determined.
C
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To keep from running out of international reserves under the Bretton Woods system, a country had to implement ________ monetary policy to ________ its currency
A) expansionary; strengthen B) expansionary; weaken C) contractionary; strengthen D) contractionary; weaken
An example of a public policy response to a monopoly is:
A. public admonishment. B. encouraging mergers. C. antitrust laws. D. All of these are examples.
The trade philosophy of the Clinton administration is best characterized as
a. protectionist. b. mercantilist. c. free trade. d. strategic trade.
If supply increases, then:
A. the quantity demanded will increase. B. price will increase. C. demand will increase. D. the quantity demanded will decrease.