Suppose a firm anticipates that an R&D expenditure of $100 million will result in a new production process that will reduce costs and thus create a one-time added profit of $112 million a year later. The firm's expected rate of return is:
A. 0.12 percent.
B. 112 percent.
C. 12 percent.
D. 2 percent.
Answer: C
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An effective policy of governmental intervention in the economy requires all of the following except one. Which is the exception?
a. The will to reject sound policy if it gets in the way of political considerations b. The ability to estimate the economy's potential level of output c. The ability to predict what would happen without intervention d. An assortment of effective tools of discretionary policy e. The ability to achieve effective cooperation between fiscal and monetary policy makers
Perhaps the biggest problem that is faced by those administering workfare programs is
A. that most of the people on welfare are not highly employable. B. too much money is allocated for education and training. C. that welfare recipients have no incentive to work. D. the states are not required to follow any guidelines in administering the program.
Explain why opportunity cost is the best forgone alternative and provide examples of some opportunity costs that you have faced today
What will be an ideal response?
The Federal Reserve Act of 1913 required all ________ banks to become members of the Federal Reserve System, while ________ banks could choose to become members of the system
A) state; national B) state; municipal C) national; state D) national; municipal