The higher the future value of the payment the:
A. lower the present value.
B. future value doesn't impact the present value, only the interest rate really matters.
C. higher the present value.
D. lower the present value because the interest rate must fall.
Answer: C
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When a government subsidy is granted to the buyers of a product, sellers can end up capturing some of the benefit because
a. the market price of the product will fall in response to the subsidy. b. the market price of the product will rise in response to the subsidy. c. the market price of the product will not change in response to the subsidy. d. buyers will reduce their demand for the product.
If the labor force grows at a faster rate than the number employed, the
a. unemployment rate will fall. b. unemployment rate will rise. c. labor force participation rate will fall. d. employment rate will rise.
As the price elasticities of supply and demand increase, the deadweight loss from a tax increases
a. True b. False Indicate whether the statement is true or false
In the graph above, A is the initial budget line and B is the new budget line. Which of the following changes might have occurred?
A. P1 decreased, P2 was unchanged, income increased. B. P1 increased, P2 decreased, income was unchanged. C. P1 decreased, P2 increased, income was unchanged. D. P1 was unchanged, P2 increased, income decreased.