In the Fourteenth Century It Is Estimated That Deaths Resulting

question 98

Multiple Choice

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third.Assuming diminishing returns,the decrease in population should have

• A)increased productivity and real GDP per person.
• B)increased productivity but decreased real GDP per person.
• C)increased real GDP per person,but decreased productivity.
• D)decreased productivity and real GDP per person.

Calculate the present and future values of single payments and annuities using different interest rates and time periods.

Analyze the benefits of different payment options to make informed financial decisions.

Compute the rate of return required for an investor to be indifferent between different financial options.

Evaluate the economic value of delayed or advanced payments considering the cost of capital.

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Definitions:

Double Entry Accounting

An accounting system that maintains the balance of the accounting equation (Assets = Liabilities + Equity) by recording each transaction twice, once as a debit and once as a credit.

Single Entry Accounting

A method of bookkeeping that records only one side of each financial transaction, typically sufficient for smaller, simpler businesses.

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for other expenses.

Markup

The amount added to the cost of goods to cover overhead and profit, usually expressed as a percentage of the cost.