The rate of discount is best described as the rate of
A) return on physical capital after the cost of capital has been removed.
B) return on financial assets after an inflation adjustment has been made.
C) interest used to derive the present values of future sums.
D) return on financial capital that has not been adjusted for inflation.
C
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When a firm produces more output using the same inputs or the same output using fewer inputs we say that the firm
A) experiences positive technological change. B) will hire more workers in order to produce more output. C) experiences an increase in demand. D) is operating in the short run.
The median voter votes yes for a project if
A) the value of the project for him is larger than the tax he needs to pay. B) the value of the project for him is smaller than the tax he needs to pay. C) the total benefits are positive. D) the total cost is zero.