Suppose that new computer software for accounting and analysis at a business has a useful life of only one year and costs $200,000 before it needs to be upgraded to a new version. The revenue generated by this software is expected to be $250,000. The expected rate of return from this new computer software is:
A. 11 percent
B. 20 percent
C. 25 percent
D. 80 percent
C. 25 percent
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The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D?
A) 500 bottles of wine B) 2 bottles of wine C) 1/2 of a bottle of wine D) 1000 bottles of wine E) None of the above answers is correct.
The U.S. exchange rate rises. As a result, there is a
A) movement along the U.S. aggregate demand curve but the curve does not shift. B) rightward shift in the U.S. aggregate demand curve. C) leftward shift in the U.S. aggregate demand curve. D) rightward shift in the long-run U.S. aggregate supply curve.
If the U.S. government imposes an import quota on beef, U.S. net exports will
a. increase, the real exchange rate of the dollar will appreciate, and domestic sales of U.S. beef will increase. b. increase, the real exchange rate of the dollar will depreciate, and domestic sales of U.S. beef will not change c. not change, the real exchange rate of the dollar will appreciate, and domestic sales of U.S. beef will increase. d. not change, the real exchange rate of the dollar will depreciate, and domestic sales of U.S. beef will not change.
Which of the following is not a government activity that is involved in public finance?
A. Running government-owned enterprises such as hospitals, utilities, and lotteries. B. Redistributing income through various taxes and income-transfer payments. C. Providing public goods and services such as national defense and education. D. Regulating the activities of firms in the financial sector of the economy.