When the interest rate is 7.5%, what is the present value of a perpetuity paying $50 a year forever?
a. $375.00.
b. $465.11.
c. $537.50.
d. $666.67.
d. $666.67.
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The textbook presents the movement of rush-hour traffic as an example of social
A) chaos. B) competition. C) conflict. D) confusion. E) cooperation.
Which of the following is a component of aggregate demand?
A. Consumption B. Income C. Taxes D. Transfer payments
Unemployment that occurs when there are not enough jobs for the number of people in the labor force is referred to as:
A. Frictional unemployment. B. Structural unemployment. C. Cyclical unemployment. D. Seasonal unemployment.
A rational decision maker will take only those actions for which the expected marginal benefit _____
a. is positive. b. is at its maximum level. c. is greater than or equal to the expected marginal cost. d. is less than the expected marginal cost. e. exactly equals the total cost.