Answer the following statement true (T) or false (F)
1) Higher user costs imply that a resource should be extracted more quickly.
2) The total cost of extracting and selling a resource in a given year is the sum of the extraction
cost and user cost.
3) The higher a resource's current price, the more extraction should be delayed to a later period.
4) User cost is defined as the present value of the profit the company would earn if it delayed
extraction until next year.
1) F
2) T
3) F
4) T
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If Johanna purchases a bond for $4,500 that promises to pay her $5,000 one year later, what is the interest rate on the bond?
a. 5.3 percent b. 5.6 percent c. 10.0 percent d. 11.1 percent e. 10.5 percent
Macroeconomics is concerned with the whole economy or its major sectors.
Answer the following statement true (T) or false (F)