A person who would work for 15 more years earning $35,000 per year and discounts the future at an interest rate of 5.5% per year has an annually-compounded discounted expected present value of current and future earnings equal to
A. $351,315.
B. $856,225.
C. $622,881.
D. $201,723.
Answer: A
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Which of the following is true of equilibrium?
A) Equilibrium refers to a situation where an economic agent can be made better off without making anyone else worse off. B) Equilibrium refers to a situation where the government allocates resources among economic agents. C) Equilibrium refers to a situation where all economic agents are making sub-optimal choices and have an incentive to change behavior. D) Equilibrium refers to a situation where all economic agents simultaneously optimize after considering each other's actions.
Which of the following pairs of values of the consumer price index (CPI) is consistent with an inflation rate of 10 percent for 2014?
a. CPI in 2014 = 90; CPI in 2015 = 100 b. CPI in 2014 = 102; CPI in 2015 = 112 c. CPI in 2013 = 210; CPI in 2014 = 220 d. CPI in 2013 = 210; CPI in 2014 = 231
What roles do human capital and compensating differentials play in shaping the wage that a firm will pay a new employee?
What will be an ideal response?
The total income earned through the use of resources, plus taxes on production and on imports, equals:
A. National income B. Gross domestic product C. Personal income D. Disposable income