A Decrease in Population Can Be Expected to

question 191

Multiple Choice

A decrease in population can be expected to

• A)increase the marginal product of land.
• B)decrease the supply of land.
• C)decrease the rents on land.
• D)increase the demand for land.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the time value of money and risk.

Profitability Index (PI)

The profitability index is a calculation used to assess the relative profitability of an investment, based on its present value of future cash flows per unit of investment.

Profitability Index (PI)

A calculation that relates the benefits of an investment project to its costs, often used to compare the attractiveness of different projects.

Discount Rate

The rate at which an individual discounts future cash flows to determine their present value, essential in capital budgeting to assess the profitability of investments.