Any current outlay that is expected to yield a flow of benefits beyond one year in the future is:
a. a capital gain
b. a wealth maximizing factor
c. a capital expenditure
d. a cost of capital
e. a dividend reinvestment
c
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Use the following diagram to answer the next question.
All else equal, which of the following events would cause a shift from (I + G + NX)1 to (I + G + NX)2?
A. Domestic residents purchased $75 million of oil from Saudi Arabia. B. Government spending on national defense was reduced by $1 billion. C. Businesses built 250 new apartment buildings. D. The government cut taxes by $100,000 million.
If you have private information that you are a safer driver than your record indicates, you are likely to buy an insurance policy with
A) a higher than average deductible. B) a positive but lower than average deductible. C) an average deductible. D) no deductible.
As of 2008, the members of the WTO account for what percentage of world trade?
A) 3 percent. B) 23 percent. C) 57 percent. D) 97 percent
Subsidizing coal mining and orange growing have both been found to be economically inefficient in that the costs outweigh the benefits. However, a subsidy on coal mining would help the coal producers in West Virginia and a subsidy on orange growing would help the orange farmers in Florida. So the senator from West Virginia approaches the senator from Florida and says that he will vote for the
orange subsidy if the Florida senator votes for the coal-mining subsidy. The Florida senator agrees. Which term best describes what just happened? a. the shortsightedness effect b. logrolling c. the use of user charges d. the political voter theory