The present value of a $1000 payment received 2 years from now at 5% annual interest will be less than $900 because of
A. taxes.
B. double jeopardy.
C. withholding.
D. compounding.
Answer: D
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Define risk aversion and give an example of a risk-averse person?
What will be an ideal response?
Owners face unlimited liability in
A) national corporations and global corporations. B) partnerships and corporations. C) proprietorships and corporations. D) proprietorships and partnerships.
A monopsony will:
a. hire more workers than a competitive employer. b. pay a higher wage than a competitive employer. c. employ a quantity of labor where the marginal revenue product equals the marginal factor cost. d. all of these.
Elvis loves steak. Suppose he values the first steak sandwich he eats at $5, the second at $4.50, and the third at $4 . If he buys the 3-for-$4 special, his consumer surplus is
a. $5 b. $4 c. $1.50 d. $9.50 e. $12