If a project involves risk, managers can account for the risk by ________ the discount rate, which ________ the present value of the future profits.
A) increasing; decreases
B) decreasing; decreases
C) increasing; increases
D) decreasing; increases
A) increasing; decreases
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Are all goods economic goods? Are all economic goods also goods? Explain
What will be an ideal response?
If Mr. McLean thinks the last dollar spent on bowling yields more satisfaction than the last dollar spent on hamburgers, and McLean is a utility-maximizing consumer, he should:
a. bowl less, so the marginal satisfaction from expenditures in this area will increase. b. spend more on hamburgers, so total satisfaction from that activity will increase. c. eliminate spending on hamburgers. d. bowl more and spend less on hamburgers.
The sum of AVC and AFC equals: a. total variable cost. b. economic profit
c. accounting profit. d. average total cost.
The economy's GDP gap is negative when actual GDP is greater than potential GDP.
Answer the following statement true (T) or false (F)