Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 10 percent, and the current profits of the firm are $120 million. What is the value of the firm?
A. $44 million
B. $6,800 million
C. $4,280 million
D. $4,400 million
Answer: D
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The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) is
A) equal to one. B) greater than one. C) negative. D) less than one.
The opportunity cost of an action:
a. is equal to the marginal cost of an action b. is equal to explicit cost c. is equal to the next best alternative forgone d. is the total cost of an action
If the Internet helps buyers learn about the availability of products and find potential sellers more quickly,
a. the volume of trade will decline. b. buyers will be better off, but sellers will be worse off. c. transaction costs will rise. d. the gains from trade will increase.
Benefits from international trade are based on the following differences, except:
A. In resource endowments B. In technological capabilities C. In product quality and other attributes D. In income levels