Suppose you make $1,000 investment today that you believe will have a one-time return of $2,500 in 5 years. If the interest rate is 12%, will you have a profitable investment?
A. Yes, because the NPV is positive
B. Yes, because the NPV is negative
C. No, because the NPV is positive
D. No, because the NPV is negative
A. Yes, because the NPV is positive
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What is the best outcome for society: when firms in an oligopoly enter into a collusive agreement to operate as a monopoly or when they act as perfect competitors? Briefly explain your answer
What will be an ideal response?
If K = capital and L = labor, then output per laborer is
a. K/L b. GDP/K c. L/K d. L/GDP e. GDP/L
Which of the following is not a role of the government in the economy?
a. Establishing and Enforcing the Rules of the Game. b. Limiting Competition c. Regulating Natural Monopolies d. None of the above are roles of the government in economic systems.
When a firm faces a labor supply curve that is upward sloping, the firm must
A) offer a higher wage if it wishes to hire more workers. B) pay a wage that exceeds the value of marginal product. C) pay a wage that does not exceed the minimum wage. D) maximize the amount of labor that it hires.