Which of the Following Statements Is True of the Calculation

question 26

Multiple Choice

Which of the following statements is true of the calculation of economic damages in a civil litigation?

• A) In economic damages calculations, risk is not an issue, since the discount rate is supposed to represent a risk-free rate.
• B) All past economic damages must be reduced to present value, which requires the application of a discount rate.
• C) Calculations of economic damages are often based on a set of foundational facts rather than assumptions.
• D) An economic expert must convert future losses to present value using the applicable interest rate.

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Definitions:

Export

The act of sending goods or services from one country to another country for sale or trade.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than others.

Production Possibilities

The different mixes of products and services that a country can generate considering its accessible resources and current technology.

Total Output

The complete quantity of goods or services produced by a firm, industry, or economy within a specified period.