The longer the time horizon of a project, the more important choosing the right discount rate is
a. True b. False
a
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What is the commodity substitution bias? What effect does it have on the CPI?
What will be an ideal response?
Courts generally use the ________ when determining the value of human life in wrongful death suits
A) compensating differential approach B) actuarial approach C) lost-income approach D) sentimental approach
If demand is price inelastic and the price is lowered, which of the following occurs?
A) The quantity sold decreases. B) The total expenditure increases and the total revenue decreases. C) The total revenue of the firms selling the product is unchanged. D) The total revenue of the firms selling the product decreases. E) The total expenditure decreases and the total revenue increases.
If the Consumer Price Index was 120 in one year and 115 in the next year, then the rate of inflation from one year to the next was:
A. positive 4.2 percent. B. negative 5.0 percent. C. negative 4.2 percent. D. positive 5.0 percent.