Answer Happy

5. Answer the following: a. Should we try to eliminate all pollution? What economic considerations might favor permitting some pollution? b. If you could finance a new venture with either a stock issue or bonds, which option would you choose? What are their respective advantages and disadvantages? c. If the market rate of interest is 5%, what is the present discounted value of $1,000 that will be paid in: i. 1 year ii. 3 years iii. 5 years d. Which of the following factors (inputs) do you think include relatively large economic rents in their earnings? Explain. i. Nuts & Bolts ii. Your Economics professor iii. A champion race horse iv. A star basketball player