A firm should make an investment only if
A. it is profitable in every year.
B. the present value of the profits exceeds the present value of the costs.
C. the present value of the revenues exceeds the present value of the costs.
D. there are no large losses in the early years.
Answer: C
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The measured distribution of ________ is a more accurate indicator of the degree of economic inequality than the measured distribution of ________ because ________ data does not include ________
A) income; wealth; wealth; human capital B) wealth; income; income; holdings of real estate C) wealth; income; income; human capital D) income; wealth; wealth; employment information
John Maynard Keynes believed that a recession was caused entirely by
A. inadequate aggregate supply. B. inadequate aggregate demand. C. too much inflation. D. too much government intervention.
At the level of output where marginal revenue equals marginal cost, assume that the price of a competitive firm's product is between the firm's average total cost curve and its average variable cost curve. In this case the firm would
A. decrease output to reduce the costs. B. continue to operate in the short run. C. shut down. D. increase output to increase profit.
If the economy grows steadily over several years and at the same time maintains the aggregate demand curve in its present position, then the economy will experience which of the following?
A. a stable price level B. secular deflation C. inflation D. The price level cannot be determined without more information.