If the interest is 5%, should the firm undertake the investment?
a. Yes, since NPV=0
b. Yes, since NPV<0
c. Yes, since NPV>0
d. No, since NPV=0
c
Economics
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When we derive the demand curve for a good, we should remember that the
a. income effect must be greater than the substitution effect. b. substitution effect must be greater than the income effect. c. substitution effect must be in the same direction as the income effect. d. income effect and the substitution effect may work in the same or in opposite directions.
Economics
The best measure of living standards is
A. GDP per capita. B. Investment as a percentage of GDP. C. The ratio of current GDP to GDP in the base period. D. GDP per worker.
Economics