A perpetuity for sale at $100,000 that promises a yearly payment of $5,000 has an effective yield of
A) 2%.
B) 5%.
C) 20%.
D) 50%.
E) 2,000%.
B
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If a production process exhibits diminishing returns, then as output rises:
A. total fixed cost will eventually increase. B. total revenue will eventually decrease. C. marginal cost will eventually increase. D. average total cost will eventually decrease.
A key reason why some countries are growing very slowly is
A) they lack economic freedom. B) there is too much competition within their economies. C) they lack a democratic government. D) they are too poor, so there is no saving. E) their inflation rate is too high.
The market interest rate
a. represents the opportunity cost of investing with borrowed funds b. has no impact on the firm's investment decision if the firm uses borrowed funds c. represents the opportunity cost of investing with savings d. has no impact on the firm's investment decision if the firm uses savings e. represents the opportunity cost of investing with either borrowed funds or savings
Life expectancy at birth is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.
a. true b. false