For net present value calculations, the rate of return that one could earn by investing in another project with similar risk is known as the:
A) real interest rate.
B) nominal interest rate.
C) prime interest rate.
D) opportunity cost of capital.
D
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The price survey of the goods contained in the CPI market basket is conducted
A) every ten years, along with the Census. B) infrequently, because of its high cost. C) every year. D) monthly. E) every quarter.
The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year. The introduction of the quota has
A) not affected the level of cotton production in Georgestan. B) increased the production of cotton in Georgestan by 8 million pounds. C) decreased the production of cotton in Georgestan by 4 million pounds. D) decreased the production of cotton in Georgestan by 8 million pounds.
Say's law states that
A) supply creates its own demand. B) supply and demand are never equal. C) demand may be greater than supply. D) supply will usually be greater than demand.
Externalities are fundamentally the result of
a. the absence of competition in a market. b. the lack of well-defined or enforced property rights. c. poor information on the part of consumers. d. the presence of significant comparative advantages in production.