NPV calculation need to include
A) only sunk costs of a project.
B) only variable costs of a project.
C) all costs related to a project.
D) a risk-free rate as the discount rate.
C
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By itself, an increase in exports
A) increases GDP. B) decreases GDP. C) means imports decrease by the same amount. D) can either increase or decrease GDP, depending on whether the exports are durable or nondurable.
Firms use hostages
A) to force employees to work. B) to encourage good behavior. C) to get employees to work for less money. D) None of the above.
If a perfectly competitive firm is currently producing where P = MC and MC = ATC, then the firm will earn ________ profits.
A) positive B) zero C) negative D) above normal
At a price of $5, consumers buy 200 units of good X. When the price falls to $4, quantity demanded increases to 250 units. We can conclude that over this range, demand is:
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic.