Blog

Income Tax rate $0 to $40,000 25% $40,000 to $100,000 40% Over $100,000 60%   What is the effective tax rate if you earned $200,000? 47% 52% 58%    60%

If a company’s stock price is $100 and its Price Earnings ratio is 10.  There are also, 10 million shares outstanding of the company.  What is the companies market cap?   1. $1 billion 2. $10 billion 3. $100 billion 4. $100 million

Which of the following is included in Singapore’s GDP? The value of production by a Singaporean working in the U.S. The value of production by an American company in Singapore The value of production by a Singaporean that crosses the border to work in Malaysia All of the above are correct

Suppose you will receive $800 in two years. If the interest rate is 5 percent, then the present value of this future payment is 1. $725.62. It would be higher if the interest rate were higher 2. $727.28. It would be higher if the interest rate were higher 3. $725.62. It would be lower if the interest rate were higher 4. $727.28. It would be lower if the interest rate were higher  

Which of these is the best example of complementary goods? 1. beef and chicken 2. rice and potatoes 3. cars and bikes 4. peanut butter and jelly

An improvement in production technology will increase a firm’s costs and increase its supply increase a firm’s costs and decrease its supply  decrease a firm’s costs and increase its supply decrease a firm’s costs and decrease its supply

If Shawn can produce more donuts in one day than Sue can produce in one day, then Shawn has a comparative advantage in the production of donuts Sue has a comparative advantage in the production of donuts Shawn has an absolute advantage in the production of donuts Sue has an absolute advantage in the production of donuts

A competitive market is one in which there is only one seller, but there are many buyers are many sellers, and each seller has the ability to set the price of their product are many sellers, and they compete with one another in such a way that some sellers are always being forced out of the market are so many buyers and so many sellers that each has a negligible impact on the price of the product

If a country has 100 people and it takes 10 people to produce 1 chair and 20 people to produce 1 desk, which of these would be a point on the PPF? 1. 10 chairs and 10 desks 2. 5 chairs and 5 desks 3. 4 chairs and 7 desks 4. 4 chairs and 3 desks

The “invisible hand” directs economic activity through advertising prices central planning government regulations