State and local governments
A. accurately account for their pension liabilities.
B. understate the present value of their pension liabilities by using a discount rate that is too high.
C. overstate the present value of their pension liabilities by using a discount rate that is too low.
D. understate the present value of their pension liabilities by using a discount rate that is too low.
Answer: B
You might also like to view...
When can we expect a factor-price effect to occur? How does a factor-price effect alter an industry's short-run and long-run supply curves?
What will be an ideal response?
Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At an output of 10,000 units
A) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low. B) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low. C) producers should lower the price to $1 in order to sell the quantity demanded of 10,000. D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.
If the amount of lemonade purchased and the outdoor temperature are directly related, then
A. when temperature rises, the amount of lemonade purchased rises. B. a graph with this relationship would be negatively sloped. C. sellers of lemonade hope for cooler temperatures. D. the slope of the line reflecting this relationship will be 0.
Deficit is the difference between government expenditures, which are either purchases or transfer payments and tax receipts.
Answer the following statement true (T) or false (F)