Using the Internal Rate of Return approach to investment, one would undertake an investment if the internal rate of return
A) equals zero.
B) equals the interest rate.
C) exceeds the interest rate.
D) is less than the interest rate.
C
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The value of all the equipment and structures of an economy is referred to as:
A) wealth. B) national income. C) asset value. D) capital stock.
Situation 35-2 ? Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 35-2. If Dan's MB/MC ratio for producing is currently greater than his MB/MC ratio for stealing, then he will
A. steal more and produce less. B. steal less and produce less. C. produce more and steal more. D. produce more and steal less.
A fall in the real interest rate, all other things held constant, will cause a country's ________ to ________
A) current consumption: increase B) current consumption: decrease C) terms of trade; improve D) terms of trade; worsen E) welfare level; improve
The classical economists believed all of the following, EXCEPT
A. demand creates its own supply. B. the quantity of money people wanted to save and invest affected interest rates. C. recessions are temporary. D. wages and prices are both downwardly flexible.