A scholarship gives you $1,000 today and promises to pay you $1,000 one year from today. What is the present value of these payments?
a. $2,000/(1 + r)2.
b. $1,000 + $1,000/(1 + r)
c. $1,000/(1 + r) + $1,000/(1 + r)2
d. $1,000(1 + r) + $1,000(1 + r)2
b
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The graph shown demonstrates a tax a sellers. Before the tax was imposed, the sellers produced ________ units and received __________ for each one sold.
A. 15; $16
B. 31; $9
C. 31; $19
D. 15; $6
Which of the following is NOT a condition of a perfect competition:
A. each firm has complete knowledge about production and prices B. industry sales are small C. unrestricted entry and exit D. a single firm cannot affect market supply E. products produced by rival firms are perfect substitutes
The first, second, and third workers employed by a firm add 24, 18, and 9 units to total product respectively. Therefore, we can conclude that:
A. marginal product of the third worker is 9. B. the third worker has to work with poorer-quality tools and raw materials. C. the firm will not want to hire more than three workers. D. the first worker puts forth more effort than the second and third workers.
Some companies subject their applicants to extensive tests. Why?
A) to reduce the informational asymmetry between the firm and the applicant B) to screen the applicant to avoid the problem of adverse selection C) to gather more information about the applicant D) All of the above.