You have been promised a payment of $250,000 in the future. In which case is the present value of this payment highest?
a. You receive the payment 3 years from now and the interest rate is 8 percent.
b. You receive the payment 3 years from now and the interest rate is 6 percent.
c. You receive the payment 2 years from now and the interest rate is 8 percent.
d. You receive the payment 2 years from now and the interest rate is 6 percent.
d
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In the short run,
a. Some production costs are fixed b. All inputs are fixed c. All inputs are variable d. None of the above
One kind of gain from specialization is that
a. most individuals gain at the expense of someone else b. people develop expertise c. people get to do only what they like d. people cannot be bossed around e. people gain political power
The opportunity cost of going to a movie is
a. the price of the movie b. number of hours you spend watching the movie c. expected gains you experience by watching the movie d. the next best alternative that must be sacrificed in order to go to the movie e. expected gains minus the expected cost of the movie
Explain in detail how a decrease in consumer demand for a product will result in less of the product being produced and in fewer resources being allocated to its production
Please provide the best answer for the statement.