The Price of an Antique Is Expected to Rise by 4

question 27

Multiple Choice

The price of an antique is expected to rise by 4% during the next year.The interest rate is 9%.You are thinking of buying an antique and selling it a year from now.You would be willing to pay a total of 400 dollars for the pleasure of owning the antique for a year.How much would you be willing to pay to buy this antique? (See Problem 5.)

• A)400 dollars
• B)8,400 dollars
• C)4,444.44 dollars
• D)8,000 dollars
• E)4,000 dollars

---

Definitions:

Great Recession

The significant global economic downturn that occurred from late 2007 through mid-2009, characterized by widespread financial crisis, high unemployment, and declines in the housing market.

Labor Supply Curve

A graphical representation showing the relationship between the number of labor hours workers are willing to work at various wage levels.

Job Prospects

The potential for future employment and career opportunities in a certain field or profession.

Human Capital

The abilities, learned knowledge, and lived experiences of a person or collective, regarded with respect to their financial value or expenditure to a business or state.