The NPV of a project rises as the discount rate rises
Indicate whether the statement is true or false
False
You might also like to view...
Which is the more efficient use of one's tight budget: going to a first-run movie at $7.50 or waiting for the video to be available through Netflix?
A) Going to the first-run movie B) Waiting for the video C) Doing neither, especially if one's budget is tight. D) It depends on the chooser's own evaluations of costs and benefits.
Suppose consumers spent $42 million on Christmas trees last year when the average tree cost $30 and this year spent $42 million when the average tree costs $25 . Assuming nothing else changed, this data suggests that
a. consumers bought the same number of Christmas trees this year as last year b. the price of Christmas trees stayed the same c. total revenues to tree producers rose this year d. the demand for trees is unit elastic e. the demand for trees is inelastic
Fiscal policy is implemented primarily by
A) local governments alone. B) the defense department. C) state governments alone. D) the federal government. E) state and local governments.
Economists have long debated whether there is a significant loss of well-being to society in markets that are monopolistically competitive rather than perfectly competitive. Which of the following offers the best reason why some economists believe that
monopolistically competitive markets benefit consumers despite any loss of well-being? A) Although consumers may pay a price greater than marginal cost for a product, the product is produced at the minimum average total cost. B) Although consumers may pay a price greater than marginal cost and the product is not produced at minimum average total cost, they benefit from being able to buy a differentiated product more closely suited to their tastes. C) Consumers pay a price equal to the marginal cost of producing a product, even though it is not produced at the minimum average total cost. D) Consumers are better off choosing from a variety of differentiated products, even though product differentiation causes barriers that restrict entry into monopolistically competitive markets.