Which One of the Following Is a Correct Definition

question 210

Multiple Choice

Which one of the following is a correct definition?

• A) A perpetuity is an infinite stream of unequal payments.
• B) An ordinary annuity is a stream of equal payments which occur at the end of each time period.
• C) An annuity due is a stream of unequal payments which occur at the beginning of each time period.
• D) An ordinary annuity is an infinite stream of equal payments which occur at the end of each time period.
• E) A perpetuity is a series of equal payments which occur in even time intervals over a limited period of time.

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Definitions:

Good Y

A generic term used in economic models to represent a particular product or service in the market.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set amount of inputs, highlighting concepts of opportunity cost, efficiency, and trade-offs.

Idle Resources

Resources in an economy that are not being fully utilized, often leading to inefficiency.

Output

The total amount of goods and services produced by an economy or a production process.