In general, a firm will be unlikely to invest as long as the
A. firm has to borrow any money to make the investment.
B. profits realized from the investment are insufficient to cover the interest payments.
C. interest rate is greater than the inflation rate.
D. firm cannot sell bonds directly to the public and instead must borrow from a bank.
Answer: B
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A utility maximizing person gets marginal utility from consuming their last orange and apple of 5 and 10 respectively. If apples cost 90 cents a piece, the oranges must cost
a. $0.45 a piece. b. $0.90 a piece. c. $1.80 a piece. d. $2.70 a piece.
For a government to be efficient, a project should be funded up to
A. MB = 0. B. MB = ~ C. MC = 0. D. MC = ? . E. MB = MC.
Which of the following games might a risk-averse person play?
a. a game where she has a 50 percent chance of winning $1 and a 50 percent chance of losing $1 b. a game where she has a 50 percent chance of winning $100 and a 50 percent chance of losing $100 c. a game where she has a 60 percent chance of winning $1 and a 40 percent chance of losing $1 d. a game where she has a 40 percent chance of winning $1 and a 60 percent chance of losing $1
The country with the lowest child poverty rate of those listed here is
A. Sweden. B. Denmark. C. Britain. D. Australia.