Answer:
B. It increased, but it less than doubled
Explanation:
Real GDP per person is defined as the total economic output divided by the total number of people. It is used in roughly indicating the standard of living.
An increased in the nominal GDP 3 times its formal will lead to a proportionate increase in the GDP per person statistics. But I was a noted that there was a 100% increase in population, meaning that population doubled. This indicates that the GDP per person increased but it less than double because of the population doubling in that period of time.
Answer:
A. $19,034
Explanation:
The computation of the present value for 20 years cash flow is shown below:
For the First 10 years
Given that
Payment for first 10 years = $2,000
Discount rate = 11%
Now the present value is
= $2000 ÷ 1.11 + $2,000 ÷ 1.11^2 +...........+ $2,000 ÷1.11^10
= 11,778.46402 ..............(1)
For the Next 10 years
Given that
Payment for next 10 years = 3,500
Discount rate = 11%
Now the present value is
= $3,500 ÷ 1.11 + $3,500 ÷ 1.11^2 +...........+ $3,500 ÷ 1.11^10
= 20,612.312
So, today present value is
= $20,612.312 ÷ 1.1110
= 7,259.339 ...........................(2)
Now
Total present value is
= $7,259.339 + $11,778.46402
= $19,034
Answer:
The amount of tax on a case of Cola is ;
= Selling price - Producer gain
= 6 - 2
= $4
The burden that falls on consumers is;
= Current selling price - Previous selling price
= 6 - 5
= $1
The burden that falls on the producers is;
= Selling price less consumer tax - Producer gain
= 5 - 2
= $3
The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers. <u>FALSE. </u>
Whether the tax is on the producer or on the consumer makes no difference because the quantity sold will be the same. The statement is therefore false.
