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
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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.
All taxes impose an excess burden.
A. True B. False C. Uncertain
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.
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.