According to the Net Present Value (NPV) rule, managers choose to invest if
a. The NPV of the project is less than zero
b. The NPV of the project is greater than zero
c. The NPV of the project is equal to zero
d. The NPV of the project is equal to the cost of capital
b
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Refer to Table 17-1. If the output price is $3, what is the marginal revenue product of the fifth unit of labor?
A) $1,050 B) $360 C) $210 D) $150
The quantity of money demanded is positively related to the interest rate
Indicate whether the statement is true or false
Capital is defined as
a. a flow of money into a business to buy various inputs. b. automated production processes which require little or no labor. c. interest payments to owners of companies. d. an inventory of plant, equipment and other productive resources held by a firm.
A tax placed on imports is known as
A) voluntary restraint agreement. B) tariff. C) quota. D) infant industry.