1. According to the wage-price spiral, if a company gives a worker a raise in pay, then they increase the price of their products. 2. When the actual inflation rate is lower than expected, lenders win and borrowers lose, because the real interest rate is greater than expected. 3. When the supply of a product or service goes down and the demand stays the same the Price will typically fall 4. The fundamental economic concept that describes the total amount of a specific good or service that is available to consumers is called supply. 5. Book value of a fixed asset is equal to: Cost - Salvage value. 6. With an interest rate of 8% compounded semiannually, the value of a $1000 investment after 5 years is most nearly ($1840). 7. The calculation of depreciation using the declining-balance method ignores salvage value in determining the amount to which a constant rate is applied. 8. Inflation occurs whenever the price level falls continuously over a period of time. 9. When the supply of a product or service goes down and the demand stays the same the Price will typically fall. 10. To earn as much interest as possible, you should open a savings account that earns simple interest and has the highest interest rate.

1. According to the wage-price spiral, if a company gives a worker a raise in pay, then they increase the price of their products. 2. When the actual inflation rate is lower than expected, lenders win and borrowers lose, because the real interest rate is greater than expected. 3. When the supply of a product or service goes down and the demand stays the same the Price will typically fall 4. The fundamental economic concept that describes the total amount of a specific good or service that is available to consumers is called supply. 5. Book value of a fixed asset is equal to: Cost - Salvage value. 6. With an interest rate of 8% compounded semiannually, the value of a $1000 investment after 5 years is most nearly ($1840). 7. The calculation of depreciation using the declining-balance method ignores salvage value in determining the amount to which a constant rate is applied. 8. Inflation occurs whenever the price level falls continuously over a period of time. 9. When the supply of a product or service goes down and the demand stays the same the Price will typically fall. 10. To earn as much interest as possible, you should open a savings account that earns simple interest and has the highest interest rate.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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