Public sector investment projects are economically justifiable only when:
a. the discounted social benefits exceed the discounted social costs
b. the internal rate of return exceeds the social discount rate
c. the benefit-cost ratio exceeds zero
d. a and b only
e. a, b, and c
d
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In the long run, firms in monopolistic competition produce at a level that is ________ the efficient scale of output
A) less than B) equal to C) more than D) All of the above are possible depending on market conditions.
The Second Bank of the United States rose to prominence under the leadership of:
a. Alexander Hamilton. b. Andrew Jackson. c. Henry Clay. d. Nicholas Biddle.
A mortgage loan made to a borrower with a low credit score is called a:
A. prime mortgage. B. hi-risk mortgage loan. C. bundled financial loan. D. subprime mortgage.
When the price level in the United States rises, then net exports should
a. rise and equilibrium real GDP should increase. b. fall and equilibrium real GDP should increase. c. fall and equilibrium real GDP should decrease. d. rise and equilibrium real GDP should decrease.