A normal rate of return on investment is equal to
A) accounting profit minus economic profit.
B) the opportunity cost of capital plus any other implicit costs.
C) accounting profit plus economic profit.
D) total revenue plus total accounting profit
B
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Which of the following is true of a firm that can successfully practice price discrimination?
a. Its total revenue is often reduced. b. It appropriates a part of the consumer surplus. c. It has no way of distinguishing between types of customers. d. It has no market power in the industry. e. It must be a perfectly competitive firm.
By definition, M1 includes
a. savings accounts b. money market mutual accounts c. repurchase agreements d. small denomination time deposits e. travelers' checks
After a country goes from disallowing trade in coffee with other countries to allowing trade in coffee with other countries,
a. the domestic price of coffee will be greater than the world price of coffee. b. the domestic price of coffee will be lower than the world price of coffee. c. the domestic price of coffee will equal the world price of coffee. d. The world price of coffee does not matter; the domestic price of coffee prevails.
Suppose the interest rate is 3% and that you are to receive three annual payments of $1,000, with the first payment today, the second payment one year from now, and the third payment two years from now. What is the present value of this stream of payments?