Refer to the scenario above. Which of the following statements is true?
A) The discounted value of $3,400 to be received after five years is $3,000.
B) Tom's return from investing in his friend's project is higher than the amount received from the bank after five years.
C) Tom's return from investing in the bank is higher than the amount received from his friend's project after five years.
D) The returns on both investments are likely to be similar and Tom should be indifferent about investing in either options.
C
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When long-run average cost increases as output increases there are
A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) none of the above.
Schooling and other types of training
a. are regarded as investment in human capital. b. are an important cause of income differentials. c. involve workers' sacrificing current income in order to enjoy higher future income. d. All of the above are correct.