You expect to rent out a vacation home on Sanibel Island for $800 a month as an investment. Upkeep is estimated at $3,000 a year. If the current market interest rate is 5 percent, you are willing to pay __________ for the house
a. $132,000
b. $100,000
c. $160,000
d. $192,000
e. $800,000
A
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Liz has a comparative advantage in ________ and an absolute advantage in ________
A) smoothies only; both goods B) salads only; salads only C) both goods; both goods D) salads only; both goods E) smoothies only; smoothies only
The United States is a net importer of capital. This means
a. that U.S. citizens own more foreign assets than foreigners own U.S. assets. b. that citizens of other countries are buying more U.S. assets than Americans are buying abroad. c. only that U.S. citizens own foreign assets. d. only that foreign citizens own U.S. assets. e. that citizens of other countries are buying fewer U.S. assets than Americans are buying abroad.
"The problem of getting people to buy car insurance is best solved by the market." This belief belongs to which type of economist?
A. Behavioral B. Traditional C. Keynesian D. Modern
A stock that has a price of $20 per share, earnings per share of $2.00, and a dividend of $1.50 will have
A) a PE ratio of 20/1.50. B) a yield of 7.5 percent. C) a yield of 12 percent. D) a PE ratio of 1.333.