A distinguishing characteristic of public transfer payments is that:
A. They include wages to government workers
B. They are counted as part of government purchases in the calculation of the gross domestic
product
C. They include the cost of maintaining public parks
D. They involve no contribution to current production in return
D. They involve no contribution to current production in return
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One assumption of the perfectly competitive model is free entry and exit. This assumption most directly leads to the implication that:
A. firms will compete on the basis of better service rather than lower prices. B. positive economic profit is only possible in the short run. C. firms will have to spend money on advertising. D. a long-run equilibrium cannot be achieved.
Two projects have the following NPVs and standard deviations:
Project A Project B NPV 200 300 Standard deviation 75 100 Which of the two projects is more risky?
Credit risk is:
A. the risk of a borrower defaulting on a loan. B. lower, the longer the length of the loan. C. lower, the larger the amount of the loan. D. the risk of not being able to get a loan when your credit is good.
Serious environmental problems are
A. unique to industrial economies. B. unique to Western economies. C. unique to civilized economies (i.e., those in which people live mainly in cities). D. experienced by centrally planned and market-based economic systems.