1. In a certain town, 10 goods are traded. A merchant who operates in this town needs to keep track of _____ distinct relative prices.

a. 45

b. 90

c. 9

d. 10

2. In mid-January 2014, the length of the crack in the metal frame of a bridge was 7.6 meters. In mid-June 2014, the crack had lengthened to 8.1 meters. The average annual growth rate of the length of the crack was

a. 6.6 percent.

b. 13.5 percent.

c. 15.8 percent.

d. 16.5 percent.

3. In 2004, the Consumer Price Index for the country of Ruritania was 155.6. Over the next ten years, Ruritania's CPI inflation rate averaged 8 percent per year. In 2014, Ruritania's CPI was approximately

a. 215.9

b. 335.9

c. 280.1

d. 235.6

4. A single-payment bond has a term of 30 months and a maturity payment of $40,000. At the date it was issued, the market interest rate was 7.5 percent. The primary market price of this bond is

a. $33,384 .

b. $4569 .

c. $34,613 .

d. $4732 .

5. A firm borrows $100,000 by obtaining a single-payment loan with a term of 7 years and a market interest rate of 3.5 percent. The firm will have to repay approximately

a. $110,500 .

b. $124,500 .

c. $126,719 .

d. $127,228 .