Suppose you invest $100,000 in a new machine today, and you earn a $150,000 return in one year. What is the internal rate of return on this investment?
A) 10 percent
B) 25 percent
C) 50 percent
D) 100 percent
C
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When external benefits are present,
A) competitive markets are efficient. B) competitive markets are inefficient. C) a tax is required to eliminate the inefficiency. D) property rights have already been established.
Using a unified analytic framework to present the information in the text keeps the knowledge
A) focused on theories that have little to do with actual behavior. B) theoretical and uninteresting. C) abstract and not applicable to real life. D) from becoming obsolete.
Which of the following would decrease the price of packaged hot dogs?
a. An increase in the price of hot dog buns, a complement to packaged hot dogs. b. A decrease in the price of hamburger meat, a substitute for packaged hot dogs. c. A technological advance that lowers the cost of producing packaged hot dogs. d. All of these.
In the United States, the money supply (M1) consists of
a. paper currency, coins and traveler's checks. b. government bonds, currency, demand deposits, other checkable deposits, and traveler's checks. c. paper currency, coins, demand deposits, and savings deposits. d. coins, paper currency, demand deposits, other checkable deposits, and traveler's checks.