If you want to know the present value of a future payment received in one year, what formula can you use?
A) Present value equals future payment divided by one plus the rate of interest.
B) Present value equals future payment times the current market rate of interest.
C) Present value equals future payments times one plus the rate of interest.
D) Present value equals one plus the rate of interest in decimals divided by future payment.
A
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If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a
A) rightward shift of the demand curve for bicycles. B) rightward shift of the supply curve of bicycles. C) leftward shift of the demand curve for bicycles. D) leftward shift of the supply curve of bicycles.
A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced
A) linear B) bowed outward C) bowed inward D) perfectly horizontal