Illustrate what is present value of that gold mine

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Q. Suppose you were provided a gift of a gold mine that generates $1,000 of net income every year, indefinitely. And suppose equilibrium rate of interest is 5 percent. Illustrate what is present value of that gold mine?

Q. Explains, with aid of a diagram, effect that such legislation will have /has had on equilibrium price and quantity of labour employed. Also, explain illustrate what can be done to alleviate/remedy any problems that may arise from above law.

Reference no: EM1371574

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