The price of an asset should:
A. exactly equal the total present value of all of the asset's future payments.
B. exactly equal the total future value of all of the asset's future payments.
C. approximately equal X(1 + i) t , where X is the value of the asset, i is the interest rate, and t
is the number of years.
D. exactly equal the total present and future value of all of the asset's future payments.
A. exactly equal the total present value of all of the asset's future payments.
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To calculate the ________ of an alternative, an individual needs to estimate ________ of the alternative
A) marginal benefit; total cost B) marginal cost; total benefit C) opportunity cost; total benefit D) net benefit; both cost and benefit
If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded
A) the economy is at full employment. B) actual real GDP will not equal potential GDP. C) job search decreases. D) labor resources are allocated efficiently.
The amount of a tax paid by the buyers will be smaller the
A) more elastic the demand and the more inelastic the supply. B) more inelastic the demand and the more elastic the supply. C) more inelastic are both the supply and demand. D) more elastic are both the supply and demand.
Determining the optimal level of military expenditures is easy because the preferences of the median voter a reflected in the vote for president
a. True b. False