A new computer will generate $1,000 in net revenue for a firm during its first year, $500 during its second year, $250 during its third year, and nothing thereafter. If the interest rate is 10 percent (0.10) per year, what is the present value of the computer to the firm? (The first payment will be received at the end of this year.)
a. $1,590.91
b. $1,510.14
c. $1,750.00
d. $1,446.28
e. $1,661.16
E
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Which of the following applies to the use of money as a unit of account?
I. A unit of account is an agreed measure for stating the prices of goods and services. II. Using money as a unit of account creates a simplified pricing system. III. Economies choose many goods as units of account. A) I only B) II only C) I and III D) I and II
Denise is shopping for lobsters and eclairs. When she faces budget line b1, she chooses market basket A over market basket B. When she faces budget line b2, she chooses basket B over basket C
Which assumption of consumer theory helps us determine Denise's preference ordering over basket A and basket C? A) Completeness B) More is better than less C) Transitivity D) Convexity
From a Keynesian viewpoint, the Phillips curve should slope ___________ so that higher unemployment means lower inflation.
a. down b. up c. perfectly vertical d. perfectly horizontal
Both Google and Facebook make their money by charging advertisers to run their ads, and the bigger an audience they have, the more they can charge.
Answer the following statement true (T) or false (F)