The use of sensitivity analysis will generally result in
A) the calculation of a certainty equivalent NPV.
B) the calculation of a best case, a base case and a worst case.
C) the calculation of the coefficient of variation.
D) the calculation of the probability of the maximum profit.
B
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
A regressive tax structure is one: a. in which the tax rate increases as the base increases
b. in which the tax rate remains the same as the base increases. c. that tends to discourage additional work as income rises. d. that is famous and in use in the U.S. e. in which the tax rate increases as the base increases.
When employment discrimination results from the personal prejudices of employers, economic theory suggests that
a. it is costless for employers to discriminate against groups they do not like. b. discrimination by an employer will reduce production costs since the employer can pay lower wages. c. the wages of employees who are discriminated against will actually rise. d. an employer who discriminates will experience higher costs.
What is the major argument in the case for income equality?
What will be an ideal response?