If the interest rate is 5 percent, what is the current value of $110 to be received one year from now?
a. $104
b. $73
c. $220
d. $116
A
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During this year, nominal GDP in Syldavia was $720 billion and real GDP was $720 billion. The GDP price index in Syldavia in this year was
A) 0, because nominal GDP equaled real GDP. B) 100. C) 720. D) -1. E) 720 billion.
Efficiency losses are
A) deadweight losses caused by consumers being prevented by tariffs from buying products at the world price, products that they value more highly than that price. B) the total loss in consumer surplus from a tariff. C) the increase in producer surplus that is created by a tariff. D) the deadweight loss that is created because domestic firms have to charge higher prices to produce units of output than foreign firms would have to charge.
People can use credit to take advantage of "free" credit.
a. true
b. false
One difference between monopolistic competition and pure competition is that:
A. Products may be homogeneous in monopolistic competition B. There is some control over price in monopolistic competition C. Monopolistic competition has significant barriers to entry D. Firms differentiate their products in pure competition