Every resource has its price. The price of loanable funds is expressed as
a. the dollar amount of the loanable funds needed to buy capital
b. the dollar amount of the new equipment purchased
c. the percentage of profit from the added capital
d. a rate of interest
e. the extra output from adding capital
D
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Who has a higher bargaining power if the demand for the good being transacted is price-elastic?
What will be an ideal response?
What is the government's major problem involved in reaching the optimal level of provision for public goods?
What will be an ideal response?
During an economic slump such as the 2008 recession, what pricing strategies could a fast-food chain such as McDonald's use to maintain its sales? Use some of the concepts discussed in this chapter in your answer
What will be an ideal response?
When analyzing a capital budgeting project, the analyst must include in his calculation all of the following except
A) all revenues and costs in terms of cash flows. B) only those cash flows that will change if the proposal is accepted (i.e., incremental cash flows). C) interest payments on debt financing connected with the project. D) any effect (impact) the acceptance of the project under consideration will have on other projects now in operation.