Contracts reduce the level of specialization in an economy
a. True
b. False
B
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When two mutually exclusive projects are considered, the NPV calculations and the IRR calculations may, under certain circumstances, give conflicting recommendations as to which project to accept
The reason for this result is that in the NPV calculation, cash inflows are assumed to be reinvested at the cost of capital, while in the IRR solution, reinvestment takes place at A) the hurdle rate. B) the accounting rate of return. C) the prime rate. D) the project's internal rate of return.
The largest concentration of people in the world (the most people) now is in what region?
a. Africa b. South America c. Asia d. Europe
When the prices of food and gasoline are added to core inflation, we get:
A. core deflation. B. headline inflation. C. hyperinflation. D. adjusted inflation.
The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper. 
If Row Restaurant publishes coupons, Column Cafe would earn the highest profit if it:
A. also published coupons. B. did not publish coupons. C. chooses either strategy because Column Cafe will have the same profit in either case. D. only offered coupons half of the time.