When Americans invest in Russia, the income of Russians (that is, Russian GNP) rises by more than production in Russia (that is, Russian GDP)

A $130,000 investment in new equipment this year will increase your firm's profits by $50,000 in each of the next 3 years. What is the net present value of this investment if your firm's opportunity cost of capital is 10 percent?

A) -5,657 B) 5,657 C) 124,343 D) 128,850

Government can use its ability to coerce towards improving economic efficiency by:

A. Reducing the production of output with external benefits B. Reducing the production of output with public-goods characteristics C. Increasing the production of output with external benefits D. Increasing the production of output with external costs