At which interest rate is the present value of $80.25 one year from today equal to $75 today?
a. 4 percent
b. 5 percent
c. 6 percent
d. 7 percent
d
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According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?
a. Always. b. When the supply of corn is fixed. c. When nonprice determinants, like income and the number of buyers, are unchanged. d. When there are no shortages or surpluses of corn.
To be counted as part of the labor force, a person must:
a. be less than 65 years old. b. have worked at some time in the past. c. be employed in some productive activity. d. be working or actively looking for work. e. be above 16 years of age.
Other things being equal, which of the following would increase the market demand for labor?
A. A decrease in the cost-effectiveness of labor relative to other inputs. B. A decrease in the market demand for the firm's output. C. A fall in the wage rate. D. An increase in the marginal productivity of labor.
Ceteris paribus, an increase in the supply of a good causes which of the following?
A. Lowers the equilibrium price, and reduces the quantity bought and sold. B. Raises the equilibrium price, and raises the quantity bought and sold. C. Raises the equilibrium price, and increases the quantity bought and sold. D. Lowers the equilibrium price, and increases the quantity bought and sold.