The present value of an annuity that pays $100 each year indefinitely (i.e., a perpetuity) is $2,000 if the interest rate is 5 percent
a. True
b. False
A
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What is the least accurate description of movements in real wages between 1800-1860?
a. U.S. wages grew relative to those of England. b. The wages of females increased relative to those of males. c. The wages of skilled laborers increased faster than those of unskilled laborers. d. The U.S. became more unequal in terms of income.
Opportunity cost usually
a. cannot be measured b. applies to labor but not to capital c. is involved in calculating economic profit d. is greater than the cash payment made to a resource e. is less than the cash payment made to a resource
The most direct opportunity cost of having large families in an LDC such as Egypt is the
a. loss of its customs and traditions b. benefit of having more hands to help on the farm c. larger tax revenues government collects from families d. sacrifice of per capita material goods and services e. political instability generated by population size
Suppose the price index was 110 in 2004, 120 in 2005, and 125 in 2006 . Which of the following statements is correct?
a. The economy experienced inflation between 2004 and 2005 and between 2005 and 2006. b. The inflation rate was positive between 2004 and 2005, and it was negative between 2005 and 2006. c. The inflation rate was higher between 2005 and 2006 than it was between 2004 and 2005. d. All of the above are correct.