Why is it that projects that have negative net present values are sometimes undertaken?
What will be an ideal response?
Sometimes the influence of special interests or other factors cloud the judgment of decision
makers. Often the case arises where the analysis was a victim of faulty calculations of inputs
or outputs. For example, there might be double counting or other problems.
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Which of the following countries had the highest growth rate over about the last 100 years?
a. Japan b. China c. Germany d. United States
Which of the following statements is false?
A) A call option will sell for a fraction of the cost of the stock. B) A futures contract can be written for a commodity (such as wheat), or for a currency. C) A futures contract gives the owner the right, but not the obligation, to buy or sell a commodity at a specified price on a given future date. D) The specified price at which an option gives the owner the right to buy a stock at is called the stick price.
The stock of labor talents and skills is known as
a. a public good. b. the functional distribution. c. human capital. d. enterprise.
When L.L. Bean decides to increase its prices due to general inflation, they must reprint the millions of catalogs they produce and distribute. The costs associated with doing so in response to inflation are called:
A. menu costs. B. shoe-leather costs. C. tax distortions. D. printing costs.