If the interest rate rises to 25% would the investment still take place?
a. Yes since NPV>0
b. No since NPV<0
c. Yes since the present value of the cash flows is greater than zero
d. No since the present value of the cash flows is lesser than zero
b
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The relationship between the AS-AD model and the Phillips curve points out that as aggregate demand increases, the unemployment rate
A) decreases and the price level falls. B) increases and the inflation rate rises. C) increases and the inflation rate falls. D) decreases and the inflation rate does not change, only the price level rises. E) decreases and the inflation rate rises.
The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the deadweight loss equals ________
A) $400 B) $200 C) $800 D) $1600 E) $100
?Experimental data are easy to obtain in the social sciences.
Answer the following statement true (T) or false (F)
Consider an industry that is in long-run equilibrium. An increase in demand leads to a decrease in the price of the good. We know that this is
A. a decreasing-cost industry. B. a constant cost industry. C. an increasing-cost industry. D. not a competitive industry.