Suppose Mark invests a sum of $100,000 in a new venture. To fund his investment, Mark withdraws $50,000 from a savings account paying 10% per year and uses the proceeds from a bond that has just matured worth $50,000 . If he had reinvested the proceeds from the bond, he could have earned interest at the rate of 5%. Calculate the opportunity cost of capital for Mark in a particular year
a. $5,000
b. $7,500
c. $10,000
d. $12,500
e. $100,000
b
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Answer the following statement(s) true (T) or false (F)
1. Risk assessment refers to onlythe quantitative evaluation of risk. 2. According to the EPA model of human health risk assessment, the risk assessment phase is comprised of five distinct steps. 3. In the first step of risk assessment, hazard identification, scientific information is used to determine if there is a causal relationship between a pollutant and its harmful effects. 4. All dose-response functions for environmental hazards have known thresholds. 5. Adults experience greater adverse health effects from exposure to lead than do children.
Fractional reserve banking
Under the Social Security program currently in existence
A) benefits are based on need. B) benefits are determined by whether or not one contributed to the system. C) benefits are provided to everyone who contributed to the system EXCEPT those under private retirement programs that provide an annual income in excess of $13,500. D) benefits are guaranteed to be no lower for future retirees than for current retirees.
Firms that populate the monopolistically competitive market are not price takers but price makers
Indicate whether the statement is true or false