If the interest rate is positive, the future value of an interest bearing investment is always larger than the present value
What will be an ideal response?
True. FV = PV ? (1 + i)t. If the interest rate is positive, the future value will always be greater than the present value.
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What does the price elasticity of demand show?
In the market for sweaters, suppose Green's price elasticity of demand is 0.2, Smith's price elasticity is 1.2, and the price elasticity of all the other consumers is greater than 0.2 but less than 1.2 . Could the market price elasticity be less than 0.2 or greater than 1.2?
The substitution effect of a change in the price of cauliflower is the portion of the change in the quantity of cauliflower demanded that can be attributed to the change in the price of a substitute vegetable such as asparagus
Indicate whether the statement is true or false
Accounting profit will always be
A) more than economic profit. B) equal to sunk costs. C) less than economic profit. D) equal to implicit costs.
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Of the labeled points, only ________ are efficient.
A. W, X, Y, Z, V, and T B. W, X, Y, Z, and V C. T and U D. X, Y, and Z