Moral hazard in a transaction hurts
a. The seller only
b. The buyer only
c. Both parties
d. None of the parties
c
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Stagflation occurs when inflation ________ and GDP ________
A) rises; falls B) falls; rises C) falls; falls D) rises; rises
The internal rate of return of a project can be found by
A) discounting all cash flows at the cost of capital. B) averaging all cash inflows, and calculating the interest rate, which will make them equal to the average investment. C) calculating the interest rate, which will equate the present value of all cash inflows to the present value of all cash outflows. D) None of the above
If an increase occurs in the demand for the output of industry A, we would expect all of the following to happen except: a. an increase in the profits of industry A
b. a decrease in prices of inputs used in the production of A. c. an increase in the output of industry A. d. an increase in the demand for inputs used in the production of A.
Economic cost is:
A. Equal to explicit costs minus implicit costs. B. The same as dollar costs. C. Equal to the accounting cost minus implicit costs. D. The value of all resources used to produce a good or service.