Practice Test on Chapters 27 & 28

What is the future value of $450 at an interest rate of 11 percent one year from today?

• $495.00

• $495.40

• $494.50

• $499.50

Tags

CCSS.HSF.BF.A.2

What is the present value of a payment of $250 one year from today if the interest rate is 4 percent?

• $240.38

• $242.24

• $244.40

• None of these are correct to the nearest penny

Tags

CCSS.HSF.BF.A.2

A car salesperson gives you four alternative ways to pay for your car. The first is to pay $18,000 today. The second is to pay $19,000 one year from today. The third is to pay $20,300 two years from today. The fourth is to pay $21,500 three years from today. If the interest rate is 6 percent, which payment option has the lowest present value and which has the highest?

• The first is lowest; the second is highest

• The second is lowest; the third is highest

• The third is lowest; the fourth is highest

• The fourth is lowest; the first is highest

Tags

CCSS.HSF.BF.A.2

Which of the following best illustrates moral hazard?

• After a person obtains life insurance, she takes up skydiving

• A person obtains insurance knowing he is in poor health

• A person holds stock only in very risky corporations

• A person holds stocks from only a few corporations

The labor force

• equals the number of people employed

• equals the number of people employed plus the number of people unemployed

• equals the non-institutionalized adult population

• equals the number of people employed plus the number of people cyclically unemployed

Which of the following would be counted as unemployed according to official statistics?

• George, a full-time student who is not looking for work

• Jenna, who is on temporary layoff

• Larry, who has retired and is not looking for work

• All of these would be counted as unemployed

Who would not be included in the labor force?

• Sally, who is on temporary layoff

• Sue, who has retired and is not looking for work

• Kylie, who does not have a job, but has applied for several in the last week

• None of these is included in the labor force

In 2004, based on concepts similar to those used to estimate U.S. employment figures, the Italian adult non-institutionalized population was 45.020 million, the labor force was 24.065 million, and the number of people employed was 22.105 million. According to these numbers, the Italian labor-force participation rate

and unemployment rate were about

• 45.1%, 8.1%

• 45.1%, 4.4%

• 53.5%, 8.1%

• 53.5%, 4.4%

Matt loses his job and decides to sit on the beach rather than looking for work the next few months. Other things the same, the unemployment rate

• increases, and the labor-force participation rate is unaffected

• increases, and the labor-force participation rate decreases

• decreases, and the labor-force participation rate increases

• decreases, and the labor-force participation rate decreases

Tara just graduated from college. In order to devote all her efforts to college, she didn’t hold a job. She is going to cruise around the country on her motorcycle for awhile before she starts looking for work. As a result, the unemployment rate

• increases, and the labor-force participation rate increases

• is unaffected, and the labor-force participation rate is unaffected

• increases, and the labor-force participation rate decreases

• increases, and the labor-force participation rate is unaffected