Firms use the discount rate to
A. compute present value.
B. account for loss inventory.
C. calculate profit margins.
D. repatriate parent companies.
A. compute present value.
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The noise from the low altitude combat training the Air Force conducts over the Yippy I-O Ranch causes the ranch's cattle to lose weight. Which of the following actions is not consistent with recognition that the Yippy I-O has a property right to its skies? a. The Air Force equips its planes with mufflers
b. The Air Force compensates the Yippy I-O for the value of the lost weight. c. The ranch compensates the Air Force for the cost of moving the exercises to another location. d. The Air Force pays for cow earplugs for the ranch herd.
The Coase theorem applies when ______.
a. externalities are increased b. externalities are internalized c. internal costs are externalized d. internal costs are eliminated
Explain the basic operations of an economic game
What will be an ideal response?
The gold standard
A. worked well until World War II. B. will not work well when the world's gold supply increases as fast as the world's need for money. C. fell apart as the Great Depression spread, as nation after nation devalued its currency. D. makes monetary policy more effective.