At the equilibrium level of real GDP, total production equals total:

The U.S. system of resource ownership

a. is pure capitalism b. excludes any state ownership of resources c. includes government restrictions on the use of privately owned resources d. is designed to eliminate the problem of scarce resources e. excludes any communal ownership

Isabella is contemplating investing $10,000 in an investment. It is expected to yield $4,000 at the end of each of the next three years. The interest rate is 5 percent. What is the net present value of the expected revenues from the investment?

a. $8,426 b. $9,947 c. $10,893 d. $12,000