In cost-benefit analysis, a low discount rate tends to favor projects with relatively ____ lives
a. short
b. long
b
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Coca Cola and Pepsi, which together account for about 85 percent of the soft drink market, are best described as being in
A) a monopoly market. B) an oligopolistic market. C) a perfectly competitive market. D) a monopolistically competitive market.
Refer to Figure 13-1. Ceteris paribus, an increase in government spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
If a firm buys a specialized metal stamping machine that will last 4 years for $125,000 and cannot resell it, the sunk cost is
A) $0. B) $31,250. C) $125,000. D) $93,750.
Which of the following is a difference between the average tax rate and the marginal tax rate?
a. The average tax rate is applicable under a proportional tax system, whereas the marginal tax rate is applicable under a progressive tax system. b. The marginal tax rate is applicable under a proportional tax system, whereas the average tax rate is applicable under a progressive tax system. c. The average tax rate is the rate at which each additional dollar earned is taxed, whereas the marginal tax rate is the total tax paid divided by the amount of taxable income. d. The marginal tax rate is the rate at which each additional dollar earned is taxed, whereas the average tax rate is the total tax paid divided by the amount of taxable income.