Which of the Following Statements Best Reflects the Concept of Present

question 129

Multiple Choice

Which of the following statements best reflects the concept of present value?

• A)"The savings bond I bought five years ago is now worth $1,000."
• B)"My $100 savings bond will be worth $200 in 10 years."
• C)"You owe me $500, due at the end of the year, but I will reduce your debt to $450 if you pay me now."
• D)"The $5,000 in my savings account is worth less today than five years ago because of inflation."

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Definitions:

Labor Productivity

A measure of economic performance that calculates the amount of goods and services produced per hour of labor.

Per-Worker Production Function

The relationship between the amount of capital per worker in the economy and average output per worker.

Per-Worker Production Functions

A model depicting how the output produced by an average worker changes in response to varying levels of capital or technology per worker.

Tractors Per Worker

A measure of capital intensity, representing the number of tractors available to each worker in the agricultural sector to enhance productivity.