Discounting is the process of
a. cutting prices to get rid of surplus stocks.
b. finding the present value of future dollars.
c. finding the future value of present dollars.
d. giving special concessions to special customers.
b
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What is Joseph Stiglitz' main criticism regarding intellectual property rights protection?
What will be an ideal response?
The implicit cost of ownership:
A. is a cognitive bias. B. is an unproven concept. C. is the monetary opportunity cost that is often overlooked. D. All of these are true.
Walter puts money in a savings account at his bank earning 3.5 percent. One year later he takes his money out and notes that while his money was earning interest, prices rose 1.5 percent. Walter earned a nominal interest rate of
a. 3.5 percent and a real interest rate of 5 percent. b. 3.5 percent and a real interest rate of 2 percent. c. 5 percent and a real interest rate of 3.5 percent d. 5 percent and a real interest rate of 2 percent
What does specialization in a nation lead to?
(A) International trade (B) Comparative advantage (C) Self-sufficiency (D) Absolute advantage