If the interest rate is positive, the present value of a stream of payments is
A. unrelated to the stream of actual payments over time.
B. greater than the sum of the actual payments over time.
C. less than the sum of the actual payments over time.
D. equal to the sum of the actual payments over time.
Answer: C
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In the ultimatum game, allocators usually offer recipients at least a 40 percent share of the money, and recipients almost always reject offers of less than a 10 percent share
Which of the following does not explain why allocators offer recipients a relatively generous share and why recipients reject meager offers? A) Some people are careful not to engage in economic behavior that might offend and alienate others. B) People can and often do reject offers that offend their sense of fairness even if doing so means taking a monetary loss. C) Allocators can count on recipients to ignore all considerations except financial benefit. D) Fear of arousing outrage and abhorrence could influence economic decisions.
An inframarginal positive externality _____
a. requires subsidization to reach an optimal level of output b. requires regulation to reach an optimal level of output c. requires corrective taxation to reach an optimal level of output d. requires no action because the optimal level of output has been reached
A leveraged buyout by Eaton's of Simpson's stock or assets
a. is financed by Eaton's using its own corporate retained earnings b. is primarily debt financed c. is financed by Eaton's stock offering d. is financed by Eaton's selling Simpson's stock or assets that Eaton's acquires in the leveraged buyout e. is financed by Simpson's going bankrupt allowing Eaton's to buy its stock or assets below value (which means leveraged)
List and briefly describe the three types of unemployment
What will be an ideal response?