Refer to the scenario above. Suppose you decide to buy a Toyota Corolla. You value the car for $10,000. You don't know it, but the car dealer values it for $8,500. What is the minimum price that the seller would accept for the car?

A) $8,500
B) $7,000
C) $10,000
D) $5,000


A

Economics

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You draw colored balls out of a bag. You draw a red ball 30% of the time and a blue ball 70% of the time. For each draw, the blue outcome and the red outcome are

A) mutually exclusive. B) exhaustive. C) Both A and B. D) None of the above.

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When the interest rate is 7.5%, what is the present value of a perpetuity paying $50 a year forever?

a. $375.00. b. $465.11. c. $537.50. d. $666.67.

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Fluctuations around the long-term growth rate are called:

A. depressions. B. recessions. C. expansions. D. business cycles.

Economics

The principle that states that what matters to people is the real value or purchasing power of money is the:

A. marginal principle. B. principle of diminishing returns. C. spillover principle. D. real-nominal principle.

Economics