The present value of $1 payable in two years is
a. $1.
b. $1/(1 + 2r).
c. $1/(1 ? 2r).
d. $1/(1 + r)2.
d
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Real GDP equals $12 trillion and aggregate hours equals 300 billion hours. What does labor productivity equal?
What will be an ideal response?
We might predict that Japan has a comparative advantage compared to Russia in the production of hi-tech electronics because Japan has:
A. a climate is more suitable for electronics. B. more land available to build manufacturing plants on. C. more advanced electronics technology. D. more unskilled labor available for production.
Which of the following statements is false?
A. The Standard Oil trust forced its rivals out of business. B. The Clayton Act expressly exempted labor unions from prosecution under the Sherman Act. C. The judge in the Microsoft case concluded that the company used anticompetitive means to maintain a monopoly for its PC operating system software. D. The rule of reason originated in the ALCOA case of 1945.
The expected yield on an asset with two possible outcomes is equal to the
A) difference between the two outcomes. B) sum of the possible outcomes multiplied by their respective probabilities. C) standard deviation of the two outcomes. D) product of the two outcomes.