If the expected earnings of an investment project exceed all expenses except interest payments,
A) business firms will not undertake the project.
B) business firms will undertake the project and raise prices later.
C) business firms will not undertake the project but will borrow the funds.
D) consumers will get lower prices.
A
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Food rationing during World War I under the wartime food administration featured
a. voluntary calls for "Meatless Mondays" and "Wheatless Wednesdays." b. a broad policy of direct controls on prices set by the Food Administrator. c. rationing for all food products except sugar. d. a pervasive belief that fear of government retribution, rather than appeals to moral principles, was key to reducing consumption, and maintaining food surpluses for export.
A production possibilities frontier has a downward slope because
A. increased production of one good always reduces the additional profit of production. B. decreased production of one good is associated with lower profit from that good. C. economists have a negative view of life and human nature. D. increased production of one good always reduces production of the other. E. increased production of one good necessarily causes production of other goods to increase.