econ final (midterm 1)
which of the following is the correct way to compute the future value of $1 put into an account that earns 5 % interest for 16yrs
$1(1+.05)^16
which of the following is the correct expression for finding the present value of a $500 payment two years from todays if the interest rate is 4 %
$500/(1.04)^2
what is the opportunity cost of moving from point B to point A in figure C?
50 units of X
If the federal reserve decided to buy T-bills, it increases the demand for T-bills. how will this affect the price of T-bills and the interest rate
T-bill prices RISE and interest rates FALL
which of the following changes would not shift the demand curve for a good/service (e.g Donuts)
a change in the price of the good or service
which of the following changes would increase the present value of a future payment?
an increase in the size of the future payment
if the demand for a product increases, then we would expect equilibrium price
and equilibrium quantity both to increase
US gov't T-bills with zero coupon
are usually purchased at a discount (less than) their principal
suppose you make jewelry. if the price of gold falls, then we would expect you to
be willing and able to produce more jewelry than before at each possible price
if a shortage exists in a market, then we know that the actual price is
below the equilibrium price, and quantity demanded is greater than quantity supplied
an issuer/maker of a bond is
borrowing money
you are thinking of buying a bond from bluestone corporation. You know that this bond is long term and you know that bluestone's business ventures are risky and uncertain. You then consider another bond with a shorter term to maturity issues by a company with good prospects and an established reputation. which of the following is correct
both the longer term and the higher risk would tend to make the interest rate HIGHER on the bond issued by bluestone
what is true about leading indicators
date from the yield curve can be used as a leading indicator
a decrease in input costs to firms in a market will result in a(n)
decrease in equilibrium price and an increase in equilibrium quantity
which of the following events must cause equilibrium quantity to fall
demand supply both decreases
the supply curve for milk
does not shift when the price of milk changes and the price of milk is measured on the vertical axis of the graph
jason works part-time as a babysitter. the bureau of labor stats counts jason as
employed and in the work force
stock prices fell throughout much of 2007&2008 and many investors decided to switch their funds into the bond market. what only about 30% of surveyed investors knew was that as bond prices RISE, interest rates
fall in reaction to the increased demand for bonds
discounting refers directly to
finding the PRESENT VALUE of a future sum of money
if muffins and bagels are substitutes, a higher price for bagels would result in a(n)
increase in the demand for muffins
if a decrease in income increases the demand for a good, the the good is a(n)
inferior good
the term of a bond
is the time left until the date of maturity
who of the following would be included in the bureau of labor stats "unemployed" category
julie, who is on temporary layoff
some studies have found a positive correlation between the number of police officers per 1,000 persons and the number of crimes per 1,000 persons. this may be due to which of the following?
more policemen are hired to work in high crime areas
meredith recently graduated from college but has not yet started working. to be counted as unemployed she
must be looking for work
josh is a full-time college student who is not working or looking for a job. the bureau of labor stats counts josh as
neither in the labor force nor unemployed
the labor force equals the
number of ppl employed plus the number of people unemployed
when the price of a good is higher than the equilibrium price,
sellers desire to produce and sell more than buyers wish to purchase
the yield curve
shows the relationship between the yield of an agricultural good produced per acre of land
the principal on a bond is
the amount the bond holder will receive on the date of maturity
a downward-sloping demand curve illustrates
the law of demand
the future value of a deposit in a savings account will be smaller
the lower the interest rate is
which of the following is not a determinant of the demand for a particular good?
the prices of the inputs used to produce the good
in January, 2,500 quarts of ice cream are sold in Boston at $2 a quart. in February, 3,000 quarts are sold at $2.50 a quart. this change in quantity sold and price may have been causes by
the release of a medical study showing that ice cream consumption improves mental health
an inverted yield curve means
the short term yield on US government bonds are HIGHER than long term government bonds
the 10 year US treasury note with a face value of $10,000 (the principal) that you bought last week yielding 2.8% just dropped in price yesterday. you paid $9,500 for it but now they are selling for $9,200 this means that
the yield on the note has increased
in figure B, a shift from A to B seems most consistent with which of the following?
there is a massive immigration of labor
when two variables have a positive correlation
they tend to move in the same direction
which of the following is not one of the categories into which the Bureau of labor stats places each adult of each surveyed household
underemployed
of the points that are possible, which point will lead to a PPF that has expanded outward the most in 2017?
K
efficient production is represented by which point(s)?
K,N