If a project costs $800 today and pays a return of $864 next year, what is the highest interest rate at which the project should be undertaken?
A) 6.4 percent B) 7 percent C) 8 percent D) 8.64 percent
C
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Suppose the real interest rate rises and the quantity of loanable funds increases. These changes could have been the result of
A) firms expecting higher future profits. B) firms expecting lower future profits. C) households expecting higher future income. D) in increase in the default risk.
A business incurs the following costs per unit: Labor - $5/unit; Materials $3/unit and rent - $5000/month. If the firm produces 100 . units a month, the total fixed costs equals
a. $5,000 b. $8,000 c. $13,000 d. $3,000
Human capital
a. can be thought of, metaphorically, as the quality of society's textbooks, whereas technological knowledge can be thought of as the time that the population has devoted to reading textbooks. b. is more tangible than physical capital. c. is an input in the production of goods and services. d. is the same as the quantity of labor.
A firm's cost of production is determined by all of the following except
A) the technology used to produce its output. B) the productivity of its workers. C) the cost of raw material used in production. D) the amount of corporate taxes it must pay on its profit.