Refer to Figure 4-3. If the market price is $3.00, what is the consumer surplus on the second ice cream cone?

Which of the following represents the correct formula for present value?

A) Present value = Payment T periods from now × (1 + interest rate)T B) Present value = Payment T periods from now - (1 + interest rate)T C) Present value = Payment T periods from now + (1 + interest rate)T D) Present value = Payment T periods from now / (1 + interest rate)T

Barriers to Riches, by S. Parente and E. Prescott, emphasizes the importance of

A) barriers to technological adoption. B) barriers to the development of natural resources. C) public education. D) endogenous growth.