When considering whether to migrate to a particular location, one calculates the present value of living in that location. How does one best calculate the present value of living in a location?
A. Determine the starting wage one will earn in the location.
B. Sum up the annual incomes one will earn in the location.
C. Subtract one's wage in the new location from the starting wage in the current location.
D. Sum the annual discounted incomes one will earn in the location.
E. Subtract one's wage in the current location from the starting wage in the new location.
Answer: D
You might also like to view...
If the economy is at point 1 in Figure 13.1 and there is no policy intervention, what happens next?
A) the economy moves to point 2 B) the economy remains at point 1 C) the economy moves to the left along the AS curve D) the AS curve shifts down, causing both output and inflation to decline E) the AS curve shifts up, causing both output and inflation to rise
The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be:
a. horizontal at the full-employment level of real GDP. b. positively sloped at the full-employment level of real GDP. c. vertical at the full-employment level of real GDP. d. backward bending at the full-employment level of real GDP.
A market with easy entry could include
A) perfect competition. B) monopolistic competition. C) an oligopoly. D) a. and b. are possible
The expected real interest rate (r) is equal to
A. nominal interest rate minus inflation rate. B. nominal interest rate plus expected inflation rate. C. expected nominal interest rate minus inflation rate. D. nominal interest rate minus expected inflation rate.