A Massive Power Surge Wipes Out Half of All Computers

question 16

True/False

A massive power surge wipes out half of all computers in Melbourne.This will result in a lower demand for office workers, increasing their marginal product of labour and, hence, raising the wage of office workers.

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Definitions:

Discounted

The process of determining the present value of a payment or stream of payments that will be received in the future.

Present Value

The current value of a future amount of money or stream of cash flows, given a specified rate of return.

Rate Of Return

The increase or decrease in value of an investment within a set timeframe, represented as a percentage of the investment's starting price.

Discount Rate

The interest rate charged by central banks on loans they give to commercial banks or the rate used to discount future cash flows to their present value.