Refer to the diagram showing the average total cost curve for a purely competitive firm. At the long-run equilibrium level of output, this firm's economic profit:
A. is zero.
B. is $400.
C. is $200.
D. cannot be determined from the information provided.
A. is zero.
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President Bush lowered income taxes for individuals in 2001. Explain how lower income taxes affect the aggregate demand curve
What will be an ideal response?
Economists dismiss the idea that lower tax rates can lead to higher tax revenue, because there is a consensus that the relevant elasticities of demand and supply are very low
a. True b. False Indicate whether the statement is true or false
Suppose that you have a winning lottery ticket for $100,000. The State of California doesn't pay this amount up front - this is the amount you will receive over time. The State offers you two options. The first pays you $80,000 up front and that will be the entire amount. The second pays you winnings over a three year period. The last option pays you a large payment today with small payments in the future. The payment options are detailed in the table below: Option #1Option #2Option #3Amount paid today$80,000$22,000$50,000Amount paid after 1 years-$22,000$12,000Amount paid after 2 years-$22,000$12,000Amount paid after 3 years-$22,000$12,000 Compute the present value of each payment option, assuming the interest rate is 12%. Now, compute the present values based on an interest rate of
5%. Compare your answers, explaining why they are different when the interest rate changes. When the interest rate is 5%, the present values are as follows:Present Values (i=5%)Option #1Option #2Option #3Amount paid today$80,000$22,000$50,000Amount paid after 1 years$0$20,952$11,429Amount paid after 2 years$0$19,955$10,884Amount paid after 3 years$0$19,004$10,366Total Present Value$80,000$81,911$82,679 What will be an ideal response?
Ceteris paribus is the same as rise / run.
Answer the following statement true (T) or false (F)