Referring to the table above, the present discounted value of initial wealth plus total income is ________
A) $67,308
B) $71,200
C) $70,400
D) $68,462
D
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A price floor in an agricultural market is called
A) an agricultural floor. B) a farm support. C) a price support. D) a farm subsidy. E) a farm support price.
China runs a current account surplus with the United States. Which of the following must be true about China's balance of payments with the United States?
A) Its net exports must be negative. B) It must run a financial account deficit. C) Its balance of payments must run a deficit. D) Its balance of trade must be in deficit.
We may be tempted to determine the optimal level of advertising expenditures at the point where the last dollar spent on advertising generates an additional dollar of sales revenue (i.e, the marginal revenue of advertising equals one)
In general, this rule will not allow the firm to maximize profits because it ignores the: A) price elasticity of demand. B) marginal cost of additional sales generated by the advertising. C) advertising-to-sales ratio. D) fixed costs of advertising.
The Cost-Benefit Principle predicts that people will be less likely to smoke if the government:
A. increases taxes on cigarettes, effectively raising the price. B. increases taxes on smoking-cessation devices such as nicotine patches. C. invests more money in cancer research. D. subsidizes hospitals treating lung disease.