One example of physical capital is the amount of savings that you have

Your aunt gives you a PepsiCo bond with face value of $5,000 . It will mature in two years. Currently, the interest rate is 10 percent (0.10) per year. How will the value of the bond change if the interest rate falls to 5 percent tomorrow morning?

a. It will rise by $413.22. b. It will rise by $402.90. c. It will rise by $432.90. d. It will fall by $432.90. e. It will fall by $402.92.

In a market with perfect product competition, the MRP declines because

a. the price of output falls as output increases. b. the MP declines with each worker hired. c. both output price and the MP decline as output increases. d. the marginal revenue of each additional unit of output declines.