A cereal producer finds that when Steve McNair, the quarterback for the Tennessee Titans, endorses its product, its annual income increases from $1 million to $3 million. If the interest rate is 10 percent, the present value of Steve's name is
a. $.2 million
b. $3 million
c. $10 million
d. $20 million
e. infinite
D
You might also like to view...
The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure
The tariff is equal to ________, and the price U.S. consumers pay _______compared to the price paid when there was free trade. A) $2; increases B) $2; decreases C) $14; increases D) $14; decreases E) $12; increases
The BP curve shifts to the left when:
a. the exchange rate falls. b. interest rates rise. c. income rises. d. imports increase.
Which of the following statements is correct? a. If unions successfully bargain for higher wages for their union members, employment among union members will increase. b. Wages are higher in nonunion jobs than in union jobs of comparable skill
c. The efficiency wage model asserts that higher wages will lead to higher productivity. d. The imposition of a minimum wage above the market price for unskilled labor creates a shortage of labor.
An increase in taxes would be an expansionary fiscal policy.
Answer the following statement true (T) or false (F)