How is net present value used to decide whether a project should be undertaken or not?
What will be an ideal response?
The net present value of a project is the sum of all the costs and benefits associated with a project, using present values to make the costs and benefits comparable. A project should be undertaken when the net present value of the project is positive. For a project with negative net present value, the upfront cost of the project exceeds the discounted value of the future benefits from the project.
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The amount of a good sold in a market at a particular price cannot exceed the quantity
A. demanded at that price. B. supplied at that price. C. sold when there is a price floor. D. sold when there is a price ceiling.
Explain why a change in income tax rates causes the consumption schedule to change slope.
What will be an ideal response?
The quantity of domestically produced goods and services that households, firms, the government, and customers abroad want to buy at each price level is shown on the
a) aggregate-goods curve. b) market-demand curve. c) aggregate-demand curve. d) aggregate-supply curve.
A ballet performance had many empty seats. This implies that the
A. Price of the tickets must have been above the equilibrium price. B. Price of the tickets must have been very low because of the low demand. C. Hall where the performance was being held was very large. D. Ballet group was not very well known.