If a manager has determined that a particular piece of capital is likely to increase the cash flow of a business by $10,000 for the next five years, what is the present value of the capital at an interest rate of 10 percent? (Assume that the cash flow first increases one year from today.)
PV = ($10,000)/(1.1) + ($10,000)/(1.1)2 + ($10,000)/(1.1)3 + ($10,000)/(l.1)4 + ($10,000)/(1.1)5 = $37,907.87
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If the price elasticity of demand for cigarettes is 0.55, and the price of cigarettes increases by 10 percent, then the quantity of cigarettes demanded will fall by:
A. 550 percent. B. 55 percent. C. 0.55 percent. D. 5.5 percent.
A movement from an upper point to a lower point on the Phillips curve shows
a. decrease in the inflation and decrease in the unemployment. b. increase in the inflation and decrease in the employment. c. increase in the inflation and increase in the employment. d. decrease in the inflation and increase in the unemployment.
If domestic saving is less than domestic investment, then a country will have a ________ and positive net capital ________.
A. trade surplus; outflows B. trade deficit; inflows C. trade balance; inflows D. trade deficit; outflows
Technological change is a key force in shaping today's economy.
Answer the following statement true (T) or false (F)