Holding labor demand constant, a leftward shift of the labor supply curve leads to a shortage in the labor market

If a project costs $800 today and pays a return of $864 next year, what is the highest interest rate at which the project should be undertaken?

A) 6.4 percent B) 7 percent C) 8 percent D) 8.64 percent

Consider a car dealership that advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a down payment of $3600 dollars. You will undertake the lease if

A) you value the lease at least $350 per month. B) you value the lease at least $250 per month, the $3600 is a sunk cost. C) you value the lease less than $350 per month. D) you value buying a new car at $400 per month.