The NPV criterion states that an investment project is profitable when its NPV is ______ and unprofitable when its NPV is ______.
A. positive; positive
B. positive; negative
C. negative; positive
D. negative; negative
B. positive; negative
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In the figure above, if information technologies are introduced that are complements for high-skilled workers and substitutes for low-skilled workers, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will
________. A) rise; fall B) fall; rise C) fall; fall D) rise; rise
Why is it that pure monopoly would not likely exist without government?
What will be an ideal response?
Actual insurance premiums charged by insurance companies may exceed the actuarially fair rates because:
A) the insurance companies have monopoly rights issued by state regulators. B) the insurance companies are risk averse. C) there are administrative costs and other expenses that must be covered by the premia. D) insurance companies tend to over-state the risks they face.
Demand for a country's independently floating currency is a function of the demand for that country's goods, services, and financial assets.
a. true b. false