The expected stream of rental income is capitalized into value by converting expected future cash flows into present value through a process called:
A. amortization
B. discounting
C. compounding
D. accounting
Answer: B. discounting
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Under the U.K. Bribery Act, bribery ________ virtually illegal per se and individuals convicted under this act can face up to ________ years in prison.
A) is; 20 B) is not; 10 C) is not; 20 D) is; 10
Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview b. scrimping on the tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Visiting the beauty salon before a big date
Price leadership is a form of
A. tacit collusion. B. explicit collusion. C. monopolistic competition. D. a cartel policing mechanism.
Figure 5-16
In Figure 5-16, a decrease in the price of apples will
a.
shift Adam's budget constraint out.
b.
make Adam's budget constraint steeper.
c.
shift Adam's indifference curves out.
d.
make Adam's budget constraint flatter.