If the interest rate is r (expressed as a decimal number), the present value today of $1 to be received n years from today equals ____.
A. $1rn
B. $1(1 + r)n
C. $1/(1 + r)n
D. $1/(1 + n)r
Answer: C
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Production points inside the production possibilities frontier
A) are unattainable. B) are attainable only with the full utilization of all resources. C) are associated with unused or misallocated resources. D) result in more rapid growth.
The income that is available to individuals for consumption or investment is called disposable income
a. True b. False Indicate whether the statement is true or false
The law of increasing opportunity cost is based on the idea that
a. wages tend to increase with the level of employment b. interest rates tend to rise with increasing inflation c. labor costs for a typical firm are a large and growing proportion of total cost d. most resources are better suited to producing some goods than others e. the less of something we produce, the greater is the opportunity cost of producing still more
If the quantity demanded of a product is the same for each possible price, demand is
A) unit-elastic. B) elastic. C) perfectly elastic. D) perfectly inelastic.