Stretchy Socks, Inc, is expected to earn $2,000,000 in after-tax profits each year forever. The interest rate is 0.1 . What is the total value of all shares of stock in Stretchy Socks?
a. $1,818,182
b. $2,000,000
c. $16,528,926
d. $18,181,818
e. $20,000,000
E
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Which of the following exemplifies the tragedy of the commons?
A) Residents of the southern coast of Alaska receive only one public broadcasting signal which may be eliminated altogether if government funding is cut. B) The Lakeview Estates community is growing so fast that the city's only fire station is not able to keep pace with the population growth in the community. C) British citizens receive free universal health care administered by the government. D) The Tibetan Antelope, distinguished for its fur which is commonly used as a light wool, is a target for poachers.
What is the difference between zero accounting profit and zero economic profit?
What will be an ideal response?
If the U.S. national income is ten times the national income of Canada and the MPC in the US is 0.75 while it is 0.90 in Canada, then
a. the MPS is greater in the U.S. but consumption is greater in Canada b. the MPS is greater in the U.S. but saving is greater in Canada c. the MPS is greater in Canada but saving is greater in the U.S. d. both the MPS and saving is greater in Canada e. both the MPS and saving is greater in the U.S.
If C = 300 + 0.75Y and I = 200, then the equilibrium level of income is
A. 750. B. 1,000. C. 1,800. D. 2,000.