If i is the interest rate and X is the number of dollars to be received after t years, the formula to calculate the present value of a future payment is:
A. (1 + i) t X
B. X/(1 + i) t
C. i t /(1 + X)
D. (X/i)
B. X/(1 + i) t
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Give two examples of products sold in perfectly competitive markets and two examples of products sold in monopolistically competitive markets.
Most economic graphs have two lines perpendicular to each other. Where these lines meet is called the
A) origin. B) y-axis. C) x-axis. D) variable. E) point of beginning.
A manager believes there is a 10 percent chance their firm will have to pay $500,000, a 20 percent chance that they will have to pay $400,000 and a 70 percent chance they will be found innocent and pay nothing except the legal fees of $100,000. The manager has been offered a settlement deal of $230,000, which the manager's firm would have to pay the plaintiff. If the manager flips a coin to
decide to enter litigation or to settle, the manager is ________. A) a risk lover B) risk intolerant C) risk neutral D) risk averse
When estimating GDP using the income approach, aggregate income is adjusted by
A. subtracting depreciation. B. adding depreciation. C. adding net income earned abroad. D. subtracting indirect business taxes.