If you are to receive a payment of $200 at the end of the first year and a payment of $250 at the end of the second year and the market interest rate is 5 percent, the present value of this income stream is

The business cycle is usually illustrated using movements in

A) the inflation rate. B) labor productivity. C) real GDP. D) the size of the labor force.

Which of the following is NOT normative economic statement?

A) The minimum wage should be eliminated so unemployment can be reduced. B) Increases in the minimum wage cause increases in unemployment. C) The inflation rate should fall to increase individuals' well being. D) Taxes on cigarettes should be increased to reduce smoking.