If the expected earnings of an investment project exceed all expenses except interest payments,
A) business firms will not undertake the project.
B) business firms will undertake the project and raise prices later.
C) business firms will not undertake the project but will borrow the funds.
D) consumers will get lower prices.
A
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Most modern economic analysis is normative in nature, but involves questions with positive aspects
Indicate whether the statement is true or false
You have been hired as an economic advisor for a developing country. You have been asked to focus on education as a means for the country's development
Explain to the prime minister how improving education and training can contribute to his country's economic growth, and why it is important for the government to take a proactive role in promoting education.
A "war on drugs" is waged, and, as a result, a larger quantity of drugs flowing into the United States is seized and more drug traffickers are arrested. If demand for drugs is inelastic, one would expect the total expenditure on drugs to: a. decrease
b. increase. c. stay constant. d. There is not enough information available to make a determination.
Aggregation allows economists to ________ at the cost of ________.
A. make normative statements; ignoring positive analysis B. see the details; obscuring the big picture C. see the big picture; obscuring the details D. make positive statements; ignoring normative analysis