Ricky is thinking about borrowing $10,000 from Fred. He promises Fred cash flows of $5000 for the next three years. If Fred's cost of capital is 10%, what is the present value of the stream of cash flows?

a. $9873.45
b. $12,434.26
c. $11,342.76
d. $8677.69


b

Economics

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Refer to Table 22-1. Based on the table above, which country has a higher standard of living and why?

A) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden. B) Sweden has a higher standard of living because their GDP is higher. C) Ireland has a higher standard of living because their GDP per capita is higher. D) Sweden has a higher standard of living because their GDP per capita is higher.

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All taxes impose an excess burden.

A. True B. False C. Uncertain

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Who is considered officially unemployed?

A) Six months after failing to get a job, Abba quit looking. B) Monica graduated from college last summer but is still unemployed despite her spirited search. C) Kariuki is a retired teacher. D) Chen is going to school full time.

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Common property ownership most likely leads to

A) an efficient allocation of resources. B) production at a rate at which price is less than social cost. C) a decrease of externalities. D) an increase in pollution.

Economics