When an investment project generates output that is valued more highly than the value of the resources required for its production,
a. undertaking the project will create wealth.
b. it will generally be profitable to undertake the project if property rights are securely defined and enforced .
c. entrepreneurs seeking profit will have little incentive to undertake such projects.
d. both a and b are correct.
D
You might also like to view...
The price elasticity of demand for bread is
a. computed as the change in the price of bread divided by the change in the quantity demanded of bread. b. independent of the availability of close substitutes. c. influenced by whether consumers view bread as a necessity or luxury. d. All of the above are correct.
To prevent the dollar from depreciating, the U.S. central bank can try to fix the currency value of the dollar when they
A) buy U.S. dollars in the foreign exchange market. B) sell U.S. dollars in the foreign exchange market. C) abandon the U.S. dollar and use another country's currency as its legal currency. D) buy foreign currencies in the foreign exchange market.