If you want to know the present value of $10,000 received a year from today, and the interest rate is 4 percent, what formula can you use?
A) Present value equals $10,000 times 0.04. B) Present value equals 1.04 divided by $10,000.
C) Present value equals $10,000 divided by 1.04 D) Present value equals $10,000 times 1.04.
C
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Answer the following statement(s) true (T) or false (F)
1. According to the textbook application, CD packaging is a negative production externality. 2. At a competitive equilibrium, M? = 0, but at an efficient equilibrium MEC = 0. 3. At an efficient equilibrium, MSB = MSC, which implies that M? = MEC. 4. Property rights are the set of valid claims to a good or resource that allow its use and the transfer of ownership through a sale. 5. According to the Coase Theorem, assignment of property rights will permit bargaining that leads to an efficient solution only in the absence of externalities.
Refer to the table above. If there is no statistical discrepancy, the official settlement account balance equals
A) +$200 billion. B) -$20 billion. C) zero D) +$220 billion. E) +$20 billion.
The above figure shows the U.S. market for flip-flops. With no international trade, the price in the United States for flip-flops is ________. With international trade, the price in the United States for flip-flops is ________
A) $500; $300 B) $14; $12 C) $500; $700 D) $12; $14 E) $700; $300
Economies of scale may be a barrier to entry in a situation in which
A. only small-scale production can meet the constantly changing market demand. B. only small-scale production can lower the per-unit cost of production. C. only large-scale production can lower the per-unit cost of production. D. large-scale production is inefficient.