What Rule of Thumb Generates the Number of Periods Required

question 187

Multiple Choice

What rule of thumb generates the number of periods required for an investment to double at a given interest rate?

• A) simple growth
• B) rule of 70
• C) rule of 100
• D) linear growth

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Definitions:

Land-Rent Income

Income derived from owning land and leasing it for economic use, such as agriculture, construction, or commercial development.

David Ricardo

An influential British economist known for developing the comparative advantage theory, which explains how nations can gain from trade by specializing in producing goods for which they have a lower opportunity cost relative to other countries.

Tenant Farmers

Individuals who rent land to farm from a landlord.

Economic Rent

Extra income earned by a factor of production (like land or labor) due to its relatively fixed supply, exceeding what is economically necessary to bring it into use.