If the interest rate is 4 percent, the present value of $10,000 to be received one year from today is about
A) $9,246.
B) $9,615.
C) $10,816.
D) $10,400.
A
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Answer the following statement(s) true (T) or false (F)
1. Comparative risk analysis is aimed at minimizing the absolute level of a risk. 2. Risk-benefit analysis and benefit-cost analysis are examples of risk management strategies. 3. President Regan’s Executive Order 12291 called for the explicit use of risk-benefit analysis. 4. Economists support the use of allocative efficiency as a criterion to identify the “acceptable” level of risk. 5. In the United States, all environmental laws setenvironmental risk at a level where the MSB equals the MSC.
What are some of the reasons used to explain improvements in health, education, democracy, and political stability in many low-income countries?
What will be an ideal response?
Technology
A) is constantly changing at every point along a production possibilities curve. B) is the recipe for combining land, labor, physical capital, and entrepreneurship to produce a good. C) does not have an effect on the amount of a good a society can produce with its given resources. D) only changes if resources change.
Demand-pull inflation is
A) inflation caused by increases in aggregate demand that generate an even larger increase in aggregate supply. B) inflation caused by increases in aggregate demand that are not matched by increases in aggregate supply. C) inflation caused by reductions in short-run aggregate supply. D) inflation caused by reductions in long-run aggregate supply.