If we are going to get the most value from our resources, entrepreneurs should choose the investment alternatives that
A) reduce the value of resources and retard wealth accumulation.
B) result in the production of the largest possible output regardless of value to consumers.
C) are most heavily subsidized by the government.
D) yield a profitable rate of return.
D) yield a profitable rate of return.
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Explain the difference between positive economics and normative economics
What will be an ideal response?
Profits can be thought of as
a. the return to enterprise. b. the reward for taking a risk and winning. c. what is left over after all wages, rent, and interest have been paid. d. All of these.
What are the drawbacks of overvaluing the exchange rate as an import substitution policy?
What will be an ideal response?
Suppose the two countries can trade shares in the ownership of their perspective assets. Further, assume that a Home owner of a 10 percent share in Foreign land
He will receive 10 percent share in Foreign land, and thus receives 10 percent of the annual Foreign kiwi fruit harvest. Further assume that a Foreign owner of a 10 percent share in Home land is permitted. In this case, a Foreigner is entitled to 10 percent of the Home harvest. Calculate the expected value of kiwi fruit for each investor. Is the investor better off?