If the interest is 5%, should the firm undertake the investment?
a. Yes, since NPV=0
b. Yes, since NPV<0
c. Yes, since NPV>0
d. No, since NPV=0
c
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In the United States, the average person mostly patronizes firms that operate in
A) monopoly markets. B) monopolistically competitive markets. C) oligopoly markets. D) perfectly competitive markets.
In an Israeli factory, each worker can produce 2/5 of a shirt in an hour or 1/10 of a pair of pants in an hour. If there are 500 workers in the factory, what is opportunity cost of producing one shirt?
a. 1 pair of pants b. 4 pairs of pants c. 1/2 pair of pants d. 1/4 pair of pants e. 2 pairs of pants
In Figure 35.1, what is the opportunity cost of motorcycles in Japan?
A. 1/2 of a DVD player per motorcycle. B. 2 DVD players per motorcycle. C. 1 DVD player per motorcycle. D. 3 DVD players per motorcycle.
Which of the following contributes to structural unemployment?
A. People over 65 who don't really want to work. B. A general short-run downturn in the economy. C. People quitting a job just long enough to look for and find another one. D. People losing a job when their skills become obsolete due to technological innovations.