Michelle Vlasminski, CEO of Michelle Enterprises, has five projects in hand and is considering which, if any, to undertake. Their expected returns are: project A = 12 percent, project B = 7 percent, project C = 10 percent, project D = 9 percent, and project E = 8 percent. If the interest rate is 8.5 percent, which, if any, investment projects will she accept?
a. only project A
b. projects A and C
c. projects A, C and D
d. projects A, C, D and E
e. projects A, B, C, D and E
C
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Suppose you are deciding how much oil to pump from your oil well in the next two years. Other things equal, you will be more likely to pump more oil this year than next year if you expect
A. a lower price for oil this year than next year. B. a higher price for oil this year than next year. C. less demand for oil next year than this year. D. the same price of oil this year than next year.
Which of the following is an example of natural monopoly?
A. a market for cable TV services B. a market for breakfast cereals C. a market for cold medicines D. a market for cigarettes
Microeconomics:
What will be an ideal response?
The deep recession of 1973-1975 was mainly caused by
A. higher oil prices. B. slower money growth. C. flawed technology that caused a drop in TFP. D. an unexplained drop in business optimism.