Answer:
True
Explanation:
The production possibilities frontier illustrates the opportunity costs of producing one good instead of anther. Every additional unit produced of the good X (located in the X axis) reduces the amount of good Y (located in the Y axis) that can be produced, and vice versa. So the opportunity cost of producing good X is the amount of good Y that will not be produced.
The zebra has no thought about how it looks. it's more concerned about being able to mate, eat, and avoid predators.
Answer:
B. the reduction in economic surplus resulting from a market not being in competitive equilibrium.
Explanation:
Deadweight loss is inefficency in the market that occurs when demand and supply aren't in equilibrium. As a result of this inefficiency consumer and producer surplus falls.
Answer:
The correct answer is letter "D": The higher the expected rate of return, the wider the distribution of returns.
Explanation:
The rate of return (RoR) is the earnings an asset generates in excess of its initial cost. The amount is usually expressed as an annualized percentage rate. The RoR estimates grow between two given periods. The spread of the returns directly depends on how high those returns are: the higher, the wider distribution and vice versa.
Answer: $42.93
Explanation:
To solve this question goes thus:
Year 1:
Cash flow = $2.50
PV at 10% = 0.9091
Present value = $2.27
Year 2:
Cash flow = $2.70
PV at 10% = 0.8264
Present value = $2.23
Year 3:
Cash flow = $2.92
PV at 10% = 0.7513
Present value = $2.19
Price at Year 3:
Cash flow = $48.23
PV at 10% = 0.7513
Present value = $36.24
Price to be paid = $2.27 + $2.23 + $2.19 + $36.24 = $42.93
