If the annual interest rate is 5 percent,

If the annual interest rate is 5 percent,
 a. 100 saved today will be worth 105 after one year
  b. 90 saved today will be worth 100 after one year
  c. 100 saved today will be worth 5 after one year
  d. 99 saved today will be worth 100 after one year
  e. 100 saved today will be worth 1,000 after one year

QUESTION 2

Which of the following does the United States export?
 a. oats
  b. coffee
  c. oil
  d. lead
  e. copper

QUESTION 3

The reward for forgoing present consumption is
 a. rent
  b. profit
  c. roundabout production
  d. transfer payment
  e. interest

QUESTION 4

Which of the following does the United States import?
 a. cotton
  b. wheat
  c. oil seeds
  d. zinc
  e. barley

QUESTION 5

By saving, households
 a. are supplying loanable funds
  b. are demanding loanable funds
  c. are investing
  d. are acting as a financial intermediary
  e. must find a borrower

QUESTION 6

Industries that seek trade protection from government can be said to be engaging in rent seeking behavior.
 a. True
  b. False

QUESTION 7

If the market interest rate increases, then
 a. the cost of borrowing increases and so saving falls
  b. the opportunity cost of consuming a good in the future increases and saving, therefore, increases
  c. the opportunity cost of consuming a good in the future increases and saving, therefore, falls
  d. the reward for saving diminishes and so present consumption increases
  e. the reward for saving increases and so saving increases

QUESTION 8

Dumping refers to selling a product abroad for less than the cost of production.
 a. True
  b. False