If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be
A) greater than 100. B) less than 100. C) equal to 100. D) less than 0.
A
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If the salvage value is positive the net present value of an investment ________ and this ________ the likelihood that managers will undertake the project.
A) decreases; decreases B) increases; increases C) increases; decreases D) decreases; increases
If the price of paint increases, the substitution effect will cause
a. people to paint their homes more often b. people to use more paint than they did before c. the quantity of paint demanded to increase d. the quantity of paint supplied to decrease e. people to use less paint
When two goods are perfect substitutes, the
a. indifference curve is a horizontal straight line. b. marginal rate of substitution is constant. c. indifference curve is a vertical straight line. d. Both a and b are correct.
The decision to enter or exit an industry is known as the
A. Production decision. B. Profit maximization decision. C. Investment decision. D. Output decision.