Which, if any, of the present values below are computed correctly?
a. A payment of $100 to be received one year from today, with a 2 percent interest rate, has a present value of $98.81.
b. A payment of $200 to be received two years from today, with a 3 percent interest rate, has a present value of $188.52.
c. A payment of $300 to be received three years from today, with a 4 percent interest rate, has a present value of $234.34.
d. None of the above are correct to the nearest cent.
b
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In the above figure, when the efficient quantity of gloves is produced, the total producer surplus is
A) $3,000. B) $15,000. C) $22,500. D) $45,000.
In the coordination failure model, the most likely explanation of business cycles are
A) money supply shocks. B) government spending shocks. C) total factor productivity shocks. D) fluctuations between "good" and "bad" equilibria.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
The free-rider problem makes a good profitable to provide by a private firm.
Answer the following statement true (T) or false (F)