Which of the following has the lowest present value?
A) $1,000 received in 3 years if the current interest rate is 4%
B) $1,500 received in 5 years if the current interest rate is 6%
C) $2,000 received in 6 years if the current interest rate is 11%
D) $3,000 received in 10 years if the current interest rate is 13%
D
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A firm produces output according to the production function, q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. What is the minimum cost of producing 1140 units of output?
A) Cost = $780. B) Cost = $694 C) Cost = $2,071. D) Not enough information is given to answer this problem.
The Constitution:
a. empowers each state to negotiate its own treaties with foreign governments. b. empowers the Congress to pay off all public debts, including those incurred by the states. c. allows for states to set tariffs on goods imported from another state. d. allows only the Congress to set tariffs on goods moving from one state to another.
The slope of the consumption function equals the
a. price elasticity of demand. b. marginal propensity to consume. c. marginal rate of investment. d. marginal propensity to save.
Assume you are spending your full budget and purchasing such amounts of X and Y that the marginal utility from the last units consumed is 40 and 20 utils respectively. Assume (a) the prices of X and Y are $8 and $4 respectively; (b) it takes 3 hours to
consume a unit of X and 1 hour to consume a unit of Y; and (c) your time is worth $2 per hour. You: A. should substitute X for Y until the marginal utility per hour is the same for both products. B. are consuming X and Y in the optimal amounts. C. should consume less of Y and more of X. D. should consume less of X and more of Y.