An oil producer discovers an oil supply in Texas that can be pumped for a profit of $50 per barrel now, $60 per barrel in three years, $80 per barrel in five years, or $90 a barrel in seven years. The current market rate of interest is 3 percent. When should the oil producer extract the oil to obtain the most profit per barrel in present value terms?
A. Today
B. Three years
C. Five years
D. Seven years
D. Seven years
Economics
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Explain why real GDP might be an unreliable indicator of the standard of living
What will be an ideal response?
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If a supply curve is a horizontal line, supply is said to be
A) unit elastic. B) inelastic. C) perfectly elastic. D) perfectly inelastic.
Economics
Refer to the above table. Nation "A" has a current account
A) deficit of 15. B) surplus of 15. C) deficit of 60. D) surplus of 60.
Economics
The country is experiencing rapid inflation. What could the Fed do reduce the money supply and slow inflation?
a. buy government bonds b. lower the reserve ratio c. sell government bonds d. lower the discount rate
Economics