When the benefit-cost ratio of a project is greater than 1, the project should be considered.
A. True
B. False
C. Uncertain
A. True
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In the long run, economic profit for a monopolistically competitive firm
a. is zero, due to the lack of barriers to entry b. is zero, due to product differentiation c. may be positive, due to strong barriers to entry d. may be positive, due to product differentiation e. may be positive, due to advertising and product promotion
Which of the following is NOT among the features that were phased in gradually during the integration of new members in the European Union (EU)?
A. The new members were allowed to impose a nominal tariff on the imports from the other members to stabilize themselves for the first several years. B. The citizens of the new members were not generally free to work in most other EU countries until several years after the country joined the EU. C. The new members were not full members of the common market for labor. D. The subsidies that the farmers of the new members receive started at only one-fourth of the standard levels for the common agricultural policy.
Which of the following is not economic investment?
A. The purchase of a new drill press by the Ajax Manufacturing Company. B. The purchase of 100 shares of AT&T by a retired business executive. C. Construction of a suburban housing project. D. The piling up of inventories on a grocer's shelf.
If a firm needs one machine to produce a product, and must replace the machine when it wears out, then the firm should pick a durability level of the machine that
A) minimizes the expense today. B) minimizes the present discounted cost of having the machine forever. C) maximizes the future value of the machine. D) minimizes the future value of the machine.