Question

QUESTION S What is the formula for calculating Gross Domestic Product? GOP.C. .G.PV GDP.C.I.G.En GOP.GNP (EnG GOP-C+I+G EROI QUESTIONS Why does the Fifth Amendment of the US Constitution matter to the US economy? Because like the First Amendment. It validates the right to contract free of government interference Because like the Fourth Amendment, it prevents government over-reach into duly licensed establishments whether religious or secular, not-for-profit or for-profit. Because it laid the groundwork for the 25th Amendment, which secures Presidential authority for making national economic policy. Because the Takings Clause prevents seizure of personal property without just compensation. QUESTION 16 po e n We discussed the difference between secured and unsecured debt. Name an asset that can be acquired with secured debt (for example, a mortgage). A personal residence A commercial property, such as an apartment building. A farm, including both traditional agicultural production operations and value-added operations such as wineries. Any of the above can be acquired utilizing either secured or unsecured debt, but they are all typically acquired using a mortgage. QUESTION IT Calculate the present value of a 20-year income stream of $50,000 a year, assuming a 5% discount rate. Remember: calculate the WHOLE income stream, not just the PV of one year. PV - $950.000 OP-$376, 380.48 PV - $18.844.47 Opv-S772413.56 QUESTION

Answer 1

14.

B

GDP formula is described as follows:

GDP = C + G + I + net export

It is the net export that is represented by E(n).

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15.

D

It encourages the private property rights as it is very important for the economy and limits the government from acquiring any private property unless it pays the just compensation for the private property.

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16.

A

personal residence is acquired using secured loans.

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17.

D

Working note:

R = 5%

Time = 20 years

Then,

PV of the income stream = 50000*(1-1/1.05^20)/.05

PV of the income stream = $623110.52 ( it is closest to 772413.56)

( in-fact there is not correct alternative given for this answer as the actual correct answer is far away from the given alternatives)