Define discounted value of a future payment
What will be an ideal response?
The discounted value of a future payment is the amount of money that would be needed to be invested today to generate the future payment. It is also referred to as the present value of a future payment.
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The opportunity cost of increased production of some good can be measured with
A. the slope of a ray to the production possibilities curve. B. the area under the curve of a production possibilities curve. C. the area of the rectangle bounded by the axes and the point on the production possibilities curve. D. the slope of the production possibilities curve. E. All of the responses are correct.
When the anticipated rate of inflation is 5 percent and the real rate of interest is 4 percent, the nominal rate of interest is
A) 1 percent. B) 4 percent. C) 5 percent. D) 9 percent.
The top four U.S. multinational corporations are oil companies
Indicate whether the statement is true or false
Suppose that a subsidy is provided for the consumption of good ABC, and the subsidy is different for different units of good ABC (e.g., $10 subsidy on the first unit of good ABC and $7 on the second unit of good ABC, etc.). The demand curve with such a subsidy will lie to the ______________ of the demand curve without a subsidy, __________ parallel to the demand curve without any subsidy.
A. left; but will not be B. left; and will be C. right; and will be D. right; but will not be