Microeconomics

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As the interest rate rises, the present value of a given perpetual stream of income A) increases. ... Started by jon_i	1 Replies 73 Views	Jul 1, 2018 by stallen
If an asset has a future value of 120, a present value of 30, and an interest rate of 4, how many ... Started by rl	1 Replies 168 Views	Jul 1, 2018 by Ksanderson1296
Individuals who lease a new car A) have a higher discount rate than those who buy. B) have a ... Started by elizabeth18	1 Replies 67 Views	Jul 1, 2018 by joewallace
A firm has to decide between two projects that cost 10,000 each. Project A will provide a revenue ... Started by P68T	1 Replies 50 Views	Jul 1, 2018 by Eunice618
Suppose 100 is deposited in a bank account paying 5 compounded annually. If the interest earned is X ... Started by tth	1 Replies 99 Views	Jul 1, 2018 by Carissamariew
Interest rates are positive because inflation makes purchases more expensive in the future than ... Started by abc	1 Replies 33 Views	Jul 1, 2018 by Anonymous
In an economy with no inflation, explain why interest rates are positive. What will be an ideal ... Started by bb	1 Replies 25 Views	Jul 1, 2018 by karmakat49
A major corporation hires high school students on a part-time basis. It offers a reward of 5,000 to ... Started by student77	3 Replies 45 Views	Jul 1, 2018 by millet
A firm should make an investment if the expected return is greater than A) the marginal cost of ... Started by Jkov05	1 Replies 56 Views	Jul 1, 2018 by Swizqar
Suppose a new cost-saving device will generate 1,000 net savings per year to a firm. The device ... Started by panfilo	1 Replies 158 Views	Jul 1, 2018 by Carliemb17
In using the Internal Rate of Return approach, one must first calculate the discount rate on the ... Started by codyclark	1 Replies 66 Views	Jul 1, 2018 by GCabra
To calculate the internal rate of return on a factory that would yield a perpetual future stream of ... Started by cartlidgeashley	1 Replies 31 Views	Jul 1, 2018 by briseldagonzales
If a bond's coupon adjusts to pay a constant real rate of return, then an increase in inflation ... Started by jwb375	1 Replies 42 Views	Jul 1, 2018 by robbielu01
At age 40, Joe is considering quitting his job and going back for a college degree. He needs two ... Started by washai	1 Replies 37 Views	Jul 1, 2018 by juliaf
With respect to events like global warming some economists suggest using falling discount rates ... Started by scienceeasy	1 Replies 35 Views	Jul 1, 2018 by rleezy04
The question What are you going to do with that major? implicitly questions A) how much you learn ... Started by TFauchery	3 Replies 32 Views	Jul 1, 2018 by sabina576
Bobby faces two choices. The first is to receive 600 on the spot. The other choice is to receive 800 ... Started by sdfghj	1 Replies 74 Views	Jul 1, 2018 by TheDev123
A firm has two projects. Project A has an internal rate of return of 6. Project B's internal rate of ... Started by asan beg	1 Replies 101 Views	Jul 1, 2018 by fauacakatahaias
An investment is profitable as long as its internal rate of return is equal to the rate of interest. ... Started by imowrer	1 Replies 94 Views	Jul 1, 2018 by aprice35067
Suppose that your college offers you two payment plans. You may either pay tuition of 10,000 per ... Started by melina_rosy	1 Replies 48 Views	Jul 1, 2018 by SamMuagrove
A financial services company offers to pay you 1,000 a year for life in exchange for 20,000 today. ... Started by ishan	1 Replies 58 Views	Jul 1, 2018 by tofugiraffe
You grow poplar trees. The lumber yard purchases cut trees from you. The trees grow 1 foot per year. ... Started by mckennatimberlake	1 Replies 132 Views	Jul 1, 2018 by bitingbit
If an exhaustible resource is priced at marginal cost that remains constant over time, then A) ... Started by abern	1 Replies 63 Views	Jul 1, 2018 by kristenb95
If a non-renewable resource is scarce, has constant marginal cost of production and is sold in a ... Started by erika	3 Replies 70 Views	Jul 1, 2018 by courtney_bruh
The growth over time in the spread between price and marginal cost of an exhaustible resource is ... Started by lracut11	1 Replies 47 Views	Jul 1, 2018 by vseab