The You Look Marvelous! cosmetic company is considering building a new shampoo factory. Its accountants and board of directors meet and decide that it is not a good idea to build the factory. If interest rates fall after the meeting
a. the present value of the factory rises. It's more likely the company will build the factory.
b. the present value of the factory rises. It's less likely the company will build the factory.
c. the present value of the factory falls. It's more likely the company will build the factory.
d. the present value of the factory falls. It's less likely the company will build the factory.
a
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A nonmonetary opportunity cost is
A) an explicit cost. B) a direct cost. C) an implicit cost. D) an accounting cost.
With a surplus in our balance of payments, there is an excess __________ dollars in the foreign exchange market, causing the dollar to __________
A) demand for; appreciate B) demand for; depreciate C) supply of; appreciate D) supply of; depreciate
The accompanying figure shows the annual production possibilities curve for a small country that is open to trade with the rest of the world. Suppose the world price of cashews is $12 per pound, and the world price of mangos is $4 per pound. As indicated in the figure, at these prices, this country will produce 21,000 pounds of mangos and 5,000 pounds of cashews each year.
Suppose that the residents of this country are allergic to cashews and only want to consume mangos. Given that this country is open to trade with the rest of the world, how many mangos in total can its residents consume each year?
A. 44,000 pounds B. 30,000 pounds C. 39,000 pounds D. 36,000 pounds
One side effect of the increased speed with which used books circulate is
A. used books are more expensive. B. new editions come out less frequently. C. new editions come out more frequently. D. used books are cheaper.