In determining the optimal capital budget, one should choose those project's whose ____ exceeds the firm's ____ cost of capital
a. internal rate of return, average
b. internal rate of return, marginal
c. internal rate of return, historic
d. average rate of return, marginal
e. none of the above
b
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When Major League Baseball players were awarded the right of free agency, no player had to give up their own free agency in order for someone else to get it, and no one could be excluded from free agency
These two characteristics of free agency demonstrate that it meets the criteria of a A) pure public good. B) club good. C) common pool resource. D) pure private good.
If expectations are “rational,” can the Fed control unemployment?
A. Yes, provided it announces policy in advance. B. Yes, if it affects the aggregate demand curve. C. No, because aggregate supply is vertical even in the short run. D. No, because only fiscal policy can affect unemployment.