If the market rate of interest is 8% per year, what is the present value of an amount of $10,000 to be received after: a) five years. b) ten years
What will be an ideal response?
a) Present value of $10,000 to be received after five years = $10,000/(1.08 )5 = $6,805. 53.
b) Present value of $10,000 to be received after ten years = $10,000/(1.08 )10 = $4,631.94.
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An increase in the number of pineapple growers results in
A) an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. B) an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. C) an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. D) no change in the supply of pineapples and a movement along the supply curve of pineapples. E) None of the above answers is correct.
Suppose that a local government decides to provide more funds to the local police department in order for the department to hire additional police officers. Is there an opportunity cost of this action? If so, how would you measure it?
What will be an ideal response?
The labor supply curve for a monopsony is
A) perfectly horizontal. B) perfectly vertical. C) upward sloping but not perfectly vertical. D) downward sloping.
Properly enforced property rights will usually cause
a. lower levels of investment spending. b. lower levels of real interest rates. c. higher levels of investment spending. d. higher levels of real interest rates.