If the interest rate is 8 percent and an investment undertaken and paid for today is expected to yield $3,000 per year (to be received at year end) for each of the next three years, a profit-maximizing decision maker would undertake the investment only as long as the cost remained less than approximately
a. $5,350.
b. $7,731.
c. $8,109.
d. $9,000.
B
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Explicit costs include
a. monitoring expenses incurred by the government b. enforcement costs paid by the public sector c. compliance costs incurred by all economic sectors d. all of the above e. none of the above
In the capital and financial account, the largest category of international transactions is
A) statistical discrepancy. B) net transfers. C) net interest. D) exports and imports. E) foreign investment in the United States.
Antitrust risks from vertical integration are usually ______than those from horizontal integration
a. Higher b. Lower c. About the same as d. None of the above
Protecting property rights:
A. is essential to economic growth. B. encourages people to invest in capital. C. by governments will likely increase productivity. D. All of these are true.