You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: Receive $2,000 five years from now. The interest rate is 15 percent (0.15) per year. Rank these three options from highest present value to lowest present value
a. Option 1, Option 2, Option 3
b. Option 3, Option 2, Option 1
c. Option 2, Option 3, Option 1
d. Option 3, Option 1, Option 2
e. Option 1, Option 3, Option 2
C
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What sort of productivity shocks would cause lower real wage growth and result in lower growth in labor productivity?
A) productivity shocks which decrease supply of labor given the demand for labor B) productivity shocks which increase supply of labor given the demand for labor C) productivity shocks which increase demand for labor given the supply of labor D) productivity shocks which decrease demand for labor given the supply of labor
Even today, individuals distrust the outcome of free markets, as is evidenced by the protests against the construction of Walmarts across the nation
Indicate whether the statement is true or false