If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth
A) more than $500,000 today.
B) $500,000 today.
C) less than $500,000 today, but a positive amount.
D) nothing today
E) some amount, but whether it is more, less or the same as $500,000 cannot be determined.
C
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Suppose we know the following about a lawn repair business: wages $15,000, profits $4,000, tax $ 3,000, parts $ 9,000. What is the contribution to GDP of this business using the product approach?
A) $31,000. B) $27,000. C) $26,000. D) $22,000.
The negative slope of the demand curve reflects the:
A. positive relationship between price and quantity demanded. B. proportional relationship between price and quantity demanded. C. inverse relationship between price and quantity demanded. D. inverse relationship between income and quantity demanded.