Assume the current interest rate is 25%. The present value of $2,000 to be received in one year would be
A. $1,000.
B. $1,200.
C. $1,600.
D. $1,800.
Answer: C
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In 1975, New York City increased regulated taxi fares by 17.5 percent and expected taxi revenue to increase a like amount. The taxi commission believed taxi demand was
a. unit elastic. b. inelastic. c. elastic. d. perfectly inelastic.
According to real business cycle theorists, changes in Real GDP are the result of initial changes in
A) aggregate demand. B) the money supply. C) the expected inflation rate. D) prices. E) none of the above
Which point on the graph below is unattainable because the economy does not have enough resources to produce it?
What will be an ideal response?
If a vintner has a comparative advantage in producing wine,
A. wine is the only product he can produce. B. he can produce wine at a lower opportunity cost than other vintners. C. he also has an absolute advantage in producing wine. D. he can produce more wine using the same resources than other vintners.