An increase in the budget deficit would cause a
a. shortage of loanable funds at the original interest rate, which would lead to falling interest rates.
b. surplus of loanable funds at the original interest rate, which would lead to rising interest rates.
c. shortage of loanable funds at the original interest rate, which would lead to rising interest rates.
d. surplus of loanable funds at the original interest rate, which would lead to falling interest rates.
c
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A drawback in using the payback approach to capital budgeting decisions is
A) it doesn't account for the time value of money. B) it ignores cash flows beyond the payback period. C) it doesn't adjust for differences in the stream of cash flows. D) All of the above
Economics is a social science that involves the study of how individuals
A) develop their tastes and preferences. B) maximize their wealth. C) define happiness. D) choose among alternatives to satisfy their unlimited wants.
A closed shop exists when the
a. employer is only permitted to hire union members b. union is the owner of the firm c. union members are not allowed to be hired d. employer can hire nonunion workers, but the workers must join the union within a certain time period e. firm goes bankrupt and workers lose their jobs
The Sunshine Corporation finds its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question.OutputTVC1$302503654855110Refer to the above information. The average fixed cost of 3 units of output is:
A. $18.50. B. $12.50. C. $13.33. D. $40.