What is the interest rate that should be used to ensure a total balance of $3,000 two years from now if you have a starting balance of $2,000?

What factor(s) enable a monopoly to make an economic profit in the long run?

What will be an ideal response?

Assume that the government provides a cash transfer to each family regardless of their market earnings. Given this transfer, which of the following hypotheses about labor supply is correct?

a. Labor supply will increase because the income effect outweighs the substitution effect. b. Labor supply will increase because leisure is an inferior good. c. The income effect will reduce labor supply; there is no substitution effect. d. Labor supply will be constant since wages are unaffected.