NPV calculation need to include
A) only sunk costs of a project.
B) only variable costs of a project.
C) all costs related to a project.
D) a risk-free rate as the discount rate.
C
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In order to ________, a government must increase spending and decrease taxation
A) decrease aggregate supply B) increase aggregate supply C) decrease aggregate demand D) increase aggregate demand
In an attempt to boost enrollment, in January, 1996, a private college in Iowa offered free tuition for graduating high school seniors from the county where it is located. For students who accepted the offer, how did this offer affect the opportunity cost of attending college?
a. The opportunity cost did not change, since lost earnings were still a factor. b. The opportunity cost became zero for the typical student. c. The opportunity cost was very low, because the only cost was for books and supplies. d. The opportunity cost did not change, since tuition was not a factor in computing opportunity cost. e. The opportunity cost was lower than if tuition was charged, but there was still a cost.