If you are receiving $2,000 per year forever, the present value of that income stream when the prevailing interest rate is 7 percent is equal to
a. $20,000
b. $62,472
c. $100,087
d. $27,000
e. $28,571
E
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The price elasticity of demand for a rental home in Luxury Resorts in the summer is 1.25 and is 2.25 in the spring. If Luxury Resorts faces a constant marginal cost of $500 per home rental, what is the profit-maximizing peak-load price to charge in the summer?
A) $1,250 B) $5,000 C) $900 D) $2,500
If unions are successful at increasing union wages, it will a. increase wages and employment in the union sector
b. increase wages and decrease employment in the union sector. c. increase wages and employment in the non-union sector. d. increase wages and decrease employment in the non-union sector.
A student eats a candy bar just prior to taking a test and receives a high grade. He does not buy one for the next test and receives a low score. On his third test, he again eats a candy bar and gets a high score. This student concludes that eating candy bars leads to higher test scores. His hypothesis
A. should be termed a “theory.” B. assumes that correlation implies causation. C. assumes that causation implies correlation. D. reflects the amount of studying he had done for the exams.
Oligopolists behave independently of each other.
Answer the following statement true (T) or false (F)