Answer:
The correct answer is letter "D": All of these are correct.
Explanation:
The Free Rider Problem refers to someone being able to gap for less or even for free what others pay more for. The problem arises when individuals are unwilling to pay their fair share for something that most others pay for. The problem is more often while talking about public goods. To avoid this issue, some sort of special must be given to consumers such as discounts, promotions for subscriptions or special information online.
Answer:
The correct answer is Unambiguously higher equilibrium quantity, and equilibrium rental rates could be higher or lower.
Explanation:
An economic equilibrium is a state of the world in which economic forces are balanced and in the absence of external influences the values of economic variables do not change. It is the point at which the quantity demanded and the quantity offered are equal, a market equilibrium, for example, refers to the condition in which the market price is established through competition so that the quantity of Goods and services desired by buyers is equal to the amount of goods and services produced by sellers. This price is usually called the equilibrium price and tends to remain stable as long as demand and supply do not vary.
<u>Answer:</u>Money received today can grow at compound rate.
<u>Explanation:</u>
The time value of the money increases based on the interest rates. So dollar earned today has more value than dollar earned tomorrow. The time value of money concept is used in financial decision making. If $1 is received today it can be invested and the rate of interest on that investment is an added value to $1.
Money can earn interest so any amount of money received today is better than receiving the same amount in the future.
Answer:
bond interest expense is deductible for tax purposes, while dividends paid on stock are not.
Explanation:
Bonds may be defined as the instrument of the indebtedness of bonds issuers to holders. A bonds helps a company to save to taxes as the bond's interest is tax deductible whereas on equity the dividend is paid after the tax profits. Thus bonds are an popular source of financing.
