The marginal tax rate serves as a measure of the extent to which the tax system discourages people from working

Why did high fertility of the early population occur, according to Hughes and Cain (2011)?

(a) More than half of the population were at ages where fertility is high—in 1820, for example, the median American was less than 17 years old. (b) A nation composed mainly of farmers and people planning to farm had every reason to create large families. (c) Children can be considered investment goods and the rate of return on a child born to a farm family was relatively high. (d) High fertility occurred due to all of the above reasons.

Which of the following alternatives signify the difference between the present value of a $150 perpetuity and 2-year $150 annuity, both discounted at 15 percent per annum

a. The perpetuity would require an initial investment worth $100 while the annuity would require an initial investment worth $244.07. b. The perpetuity would require an initial investment worth $1,500 while the annuity would require an initial investment worth $115.07. c. The perpetuity would require an initial investment worth $1,000 while the annuity would require an initial investment worth $244.07. d. The perpetuity would require an initial investment worth $100 while the annuity would require an initial investment worth $115.07.