The present value of a promise to pay $5,000 every year forever when the prevailing interest rate is 10 percent equals
a. $5,000
b. $50,000
c. $100,000
d. $250,000
e. $500,000
B
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The U.S. sugar quota
A) generates government revenue. B) results in net welfare benefits to the U.S. economy. C) results in benefits to sugar producers that exceed the cost to consumers. D) results in costs to consumers that exceed the benefits to sugar producers. E) does not result in an efficiency loss.
If a 10 percent increase in the price of tomatoes leads to a 20 percent decrease in quantity demanded, then the price elasticity of demand for tomatoes, , equals -2
a. True b. False Indicate whether the statement is true or false
Is gdp adjusted for changes in prices
What will be an ideal response?
What is the difference between a repeated and a nonrepeated game, and in which form is reputation an important consideration?
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