Refer to the table below. If the discount rate is 5 percent and the cost of the investment is $43,000, which of the following is true regarding a profit-maximizing manager?
The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.
A) The manager should not make the investment because the net present value is positive.
B) The manager should make the investment because the net present value is positive.
C) The manager should not make the investment because the net present value is negative.
D) The manager should make the investment because the net present value is negative
B) The manager should make the investment because the net present value is positive.
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The value of all the equipment and structures of an economy is referred to as:
A) wealth. B) national income. C) asset value. D) capital stock.
Moving ________ the short-run Phillips curve is equivalent to moving ________
A) downward along; downward along the aggregate demand curve B) downward along; downward along the potential GDP line C) downward along; upward along the aggregate demand curve D) downward along; upward along the potential GDP line E) upward along; upward along the aggregate supply curve
Where does the short-run Phillips curve intersect the long-run Phillips curve?
A) at the point where actual inflation is equal to expected inflation B) at the point where the rate of inflation and the unemployment rate are equal C) at the natural rate of inflation D) There is no intersection between the short-run and long-run Phillips curves.
If both matches and automobile prices increase by 10 percent, consumers will likely buy
A. fewer matches and approximately the same quantity of automobiles. B. approximately the same quantity of matches and fewer automobiles. C. fewer matches and fewer automobiles. D. approximately the same quantity of both matches and automobiles.