One of the following projects has two IRRs. Which project is it?
Answer: B.
Explanation : A project has multiple IRR when it has non normal cash flow, here non cash flow refers to large cash outflow either during the project or at the end of project. For Project 2, large cash outflow of $1,675 occurs at Year 3.
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Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be
A) equal because all have the same profile. B) equal because incomes and wealth levels must then be the same. C) unequal because other sources of income will differ. D) unequal because incomes differ by age.
If a reduction in stock prices reduces the real wealth of Americans, the
a. aggregate demand curve will shift to the left. b. long-run aggregate supply will shift to the left. c. general price level will increase. d. aggregate demand curve will shift to the right.
Information that is difficult to measure is called
a. quantitative b. qualitative c. longitudinal d. dependent
Related to the Economics in Practice on page 154: According to the Economics in Practice feature, productivity of the firms participating in the United States Technical Assistance and Productivity Program
A. grew by 15 percent in the first year and continued to grow for more than a decade afterward. B. doubled during the first two years and then declined for the rest of the decade. C. started off declining for the first decade but then grew during the second decade. D. grew only slightly in the first few years and then stopped growing in the years that followed.