If the rate of return is lower than the cost of borrowing the:
A. investor will lose money on net after paying back the loan.
B. investor should take out the loan.
C. borrower will make money by taking out the loan.
D. savers will lose out by taking a loan.
A. investor will lose money on net after paying back the loan.
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Wrongful employment discrimination:
a. occurs when employers make hiring, promotion, and pay decisions based on factors unrelated to worker productivity b. in competitive markets, puts the discriminating employer at a competitive disadvantage c. both of the above d. neither of the above
A tax that takes a larger proportion of income from low-income groups than from high-income groups is a:
A. stabilizing tax. B. regressive tax. C. proportional tax. D. progressive tax.
Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50, and the price of each input is $9. If productivity increased such that 400 units are now produced with the quantity of inputs still equal to 50, then per-unit production costs would:
A. increase and aggregate demand would decrease. B. decrease and aggregate demand would increase. C. decrease and aggregate supply would increase. D. decrease and aggregate supply would decrease.
Remittances and backflows of experienced workers:
A. reduce the efficiency gains from migration. B. reverse wage equalization that occurred with the original migration. C. exacerbate the problem of "brain drain" from developing nations. D. redistribute gains toward the original emigrant nation.