Usually an investment will be profitable if:
A. it is financed with retained earnings.
B. the internal rate of return is less than the cost of borrowing.
C. the cost of borrowing is less than the internal rate of return.
D. the cost of borrowing is equal to the internal rate of return.
Answer: C
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According to the table above determine which country has the absolute advantage in corn and which in soybeans. In addition, determine which country has the comparative advantage in corn and which in soybeans
Make sure to support your answer by deriving the opportunity costs of each.
Distinguish between the balance of payments and the balance of trade
What will be an ideal response?
Suppose the index of leading economic indicators begins to decline for several months. Which of the following economic events will likely follow?
a. A recession. b. Severe inflation. c. Greater employment. d. Higher investment.
Which of the following concepts does not represent basic trade-offs faced by a government?
A. The Phillips curve. B. Fine-tuning. C. Opportunity costs. D. The production possibilities curve.