The profitability of an investment project will increase if
A. tax rates increase.
B. real interest rates increase.
C. real interest rates decrease.
D. business tax deductions decrease.
Answer: C
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Refer to the data. If this good were a private good instead of a public one, the total quantity demanded at a $3 market price would be:
Answer the question on the basis of the following information for a public good. P a and P b are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society.
A. 2 units.
B. 3 units.
C. 6 units.
D. 4 units.
The opportunity cost for a student of attending college for a year is measured by
A. the benefit received by the student. B. the tuition paid for the year. C. the value of the most valued opportunity foregone by attending college. D. the total money outlays associated with attending college.
The table below shows data for India's economy. Real GDP is measured in millions of rupees
Price level Real GDP supplied in the short run Real GDP demanded a 114 23,501 35,898 b 120 25,355 32,341 c 125 27,670 27,670 d 131 30,366 18,569 e 138 33,164 15,898 If potential GDP in India is ________ million rupees, India is experiencing ________. A) 26,500; an inflationary gap B) 28,500; an above-full-employment gap C) 26,500; a recessionary gap D) 30,000; a potential GDP gap
A price floor will result in
a. a decrease in price if the price floor is below the market price. b. a decrease in price if the price floor is above the market price. c. an increase in price if the price floor is above the market price. d. the same price as the market price.