A Firm's Decision to Invest in a Project Is Based

question 107

Multiple Choice

A firm's decision to invest in a project is based on the

• A) real interest rate and expected total revenue.
• B) real interest rate and the expected profit.
• C) nominal interest rate and expected total revenue.
• D) nominal interest rate and the expected profit.

Grasp the concepts of absolute and comparative advantage in international trade.

Recognize the effects of trade policies and subsidies on prices and trade volumes.

Understand the role of specialization and trade in allowing consumption outside the production possibility curve.

Realize the differences between acquired and natural comparative advantages.