if $3,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is
a. $3,300,000
b. $3,000,000
c. $3,090,000
d. $2,910,000
Answer: d. $2,910,000
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In a state-run lottery, where winners are paid in annual installments
a. the present value of the payments is less than the number of dollars won b. the future value of the winnings is less than the number of dollars won c. the present value of the payments is greater than the number of dollars won d. the winner would prefer the annual installments to a lump sum payment made immediately e. none of the above is correct
The payments made to the beneficiaries of the Social Security program are financed by
a. insurance premiums previously paid into the system by the beneficiaries. b. current receipts derived from the Social Security payroll tax. c. income derived from funds that were previously invested in stocks and bonds. d. governmental savings accounts based on the amount of funds the recipient previously paid into the system.
Assume there is no foreign trade, the government sector has a balanced budget, and the economy is in equilibrium. If actual investment is greater than desired investment, then it is most likely that
A. Investment plus government spending is greater than saving plus taxes. B. Saving plus taxes is greater than investment plus government spending. C. Investment plus taxes is greater than saving plus government spending. D. Saving plus government spending is greater than investment plus taxes.
The additional cost associated with hiring one additional unit of some factor input, such as labor, is referred to as
A. marginal revenue product. B. marginal revenue cost. C. marginal physical product of labor. D. marginal factor cost.