ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 4.9P
To determine
Identify the present value of an income stream
Concept Introduction:
Interest rate: The rate charged per period for borrowed money, deposited or lend expressed as a percentage of principal
Present value of an income stream: The current value of a future sum of money or stream of cash flows at a given specified
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
11-
Earnings such as wages, interests and dividends by residents who are living in other countries are called _____________.
a.
Domestic Output
b.
Factor income from abroad
c.
Price level
d.
Domestic product
16-
Which one of these will be deducted from gross output to determine the net output?
a.
Intermediate consumption
b.
Private income
c.
Factor income from abroad
d.
Total government spending
5-
Which of these is true about GDP and equality?
a.
Equality is guaranteed in countries with high GDP
b.
Lower GDP means more inequality
c.
There is no clear relationship between GDP and equality
d.
Higher GDP means more inequality
Knowledge Booster
Similar questions
- 8. Includes all income earned: wages, profits, rent, and profit income within an Economy. Question 8 options: Trade Balance Net Income Gross Domestic Product National Incomearrow_forward7- The__________refers to the sum of all current incomes received by the individuals or households from all sources within the domestic territory of a country during an accounting year. a. National income b. Private income c. Personal income d. Passive incomearrow_forward16 - Which of the following is the production value of a Turkish artisan who produces bread in Karabük? a) GDP B) net national income C) GDP D) GDP vs. GNP TO) Added Valuearrow_forward
- Qs 4: What is the meaning of the term ‘tax expenditure’?arrow_forward23 Goods and services produced by Omani working in Oman is OMR 3.1 billion, produced by Omani working outside Oman = OMR 1.5 billion, and produced by the residents who are working in Oman OMR 2.9 billion. Calculate Gross Domestic Product of Oman? Select one: a. 0.20 b. None of these c. 4.50 d. 6.00 e. 7.50arrow_forward19 Earnings such as wages, interests and dividends by residents who are living in other countries are called _____________. a. Domestic product b. Factor income from abroad c. Price level d. Domestic Outputarrow_forward
- 4. Do you think that incomes and purchasing power are related? Are companies required to pay their employees more to compensate for higher costs of living?arrow_forwardCh. 13 Please help solving all parts of this question. Thank you!arrow_forwardACTIVITY 4: Assessment Assume that a country has a closed economy that has only three goods/services. That is, there is no trade with other countries, so the economy has consumption, investment, and government spending, but no net exports. Each year, the economy produces three haircuts that cost $10 each two factory machines that cost $100 each one highway repair that costs $500 1a. What is total GDP for this economy? 1b. What percent of GDP is consumption? 1c. What percent of GDP is investment? 1d. What percent of GDP is government spending?…arrow_forward
- Economy 1. Pamela worked as an auditor earning $60,000 per annum. She decided to open her own consultancy business. For her business, she rents an office where she pays $2,000 per annum. Further, her utility expenses are $300 per annum and she hired a part-time secretary to whom she pays $25,000 per annum. To start her business, she borrowed $40,000 from her savings, where she was earning an interest of $500 per annum. In her first year, her business earned a revenue of $300,000. Based on this information, calculate the following: a. Total implicit costs per annum b.Total explicit costs per annum c.Total accounting costs and accounting profit for that year d.Total economic costs and economic profit for that yeararrow_forward#19 ch. 13 Can you help me solve this?arrow_forwardPrepare a chart that compares India, Spain, and South Africa based on the data you find. Describe the key differences between the countries. Rank these as high-, medium-, and low-income countries, explain what is surprising or expected about this data.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning