If the cost of the capital is 9%, is the investment feasible?
a. Yes because the NPV>0
b. Yes because the NPV=0
c. No because the NPV<0
d. Need information on the marginal benefits and costs
c
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A monopolistically competitive industry has
A) significant barriers to entry. B) differentiated products. C) mutually dependent firms. D) a small number of large firms.
Suppose an ocean liner sinks and the passengers are stranded on a lush tropical island. Which of the following could most likely be used as money in the economy that develops among the survivors?
a. The life jackets they put on when leaving the ship b. The beads from the necklaces that were given out as party favors on the night the ship sank c. The coconuts growing on the island d. The fish in the sea around the island e. The sand on the island's beaches
Refer to the above figure. If the aggregate demand curve shifts beyond AD5, which of the following would we NOT expect?
A. no increase in real Gross Domestic Product (GDP) B. strong and rapid increases in the price level C. strong demand-pull inflation D. increases in real net domestic product
The degree of inequality in income distribution based on single-year data is:
A. Understated even though it takes into account income mobility B. Overstated because it does not take into account income mobility C. Understated because it does not take into account income mobility D. Overstated even though it takes into account income mobility