Suppose the interest rate is 10 percent. Which of the following payments has the largest present value?
a. You receive $90.91 two years from today.
b. You receive $82.64 one year from today.
c. You receive $75.13 today.
d. All of these payments have the same present value to the nearest cent.
d
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Income disparities alone prove the existence of racial discrimination in the labor market
Indicate whether the statement is true or false
To maximize social welfare in the presence of a negative externality, marginal __________ must equal marginal __________
a. social cost; private cost b. private cost; social cost c. social cost; social benefit d. private cost; social benefit e. social cost; external cost
Fundamentally, economics is concerned with:
a. how scarce resources are allocated to satisfy limited wants. b. how limited resources are allocated to satisfy scarce wants. c. how limited resources are allocated to satisfy unlimited wants. d. how limited wants can be used to satisfy limited resources.
The price system rations goods among consumers in such a way that
a. all are treated equally. b. all needs are satisfied. c. the rich are favored. d. important needs are satisfied first.