Refer to Scenario 15.6. What formula shows the dollar stream expected from this purchase?
A) -$4000 + $0 + $25,000 + $25,000 + $25,000 + $25,000
B) $0 + $25,000 + $25,000 + $25,000 + $25,000
C) $25,000 + $25,000 + $25,000 + $25,000
D) -$4000 + $0 + $2500 + $2500 + $2500 + $2500
E) $96,000
D
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Use the following graph to answer the next question:
If the firm was operating as a perfectly competitive firm, what level of output would they produce to maximize profits?
A. Somewhere greater than Qc B. Qc C. Qo D. Somewhere between Qc and Qo
Suppose the population of Timmy Town is 1000 people and the working-age population is 800. If 200 of these people are unemployed, the unemployment rate in Timmy Town is
A) 1/4 × 100. B) 1/5 × 100. C) 1/8 × 100. D) 2 percent. E) There is not enough information provided to calculate the unemployment rate.
What would happen to the quantity of human organs supplied if the restriction on selling organs were lifted?
a. It would remain unchanged. b. It would increase. c. It would decrease. d. It would decrease to zero.
In the textbook model, wealth is held in two forms: money and in bond funds. Which of the following statements are true?
I. Money and bond funds earn the same interest rates in a well functioning money market. II. Money is a more liquid asset compared to bond funds. III. Bond funds are interest earning assets while money generally is not. IV. The difference between the interest rates paid on money deposits and the interest return available from bonds is the cost of holding money. A) I, II, and IV B) I and IV C) II, III, and IV D) III and IV