Policymakers Should Be Aggressive in Using Their Powers to Place

question 152

True/False

Policymakers should be aggressive in using their powers to place limits on firm behavior, because business practices that appear to reduce competition never have any legitimate purposes.

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Definitions:

Present Value

The worth at present of a sum of money expected in the future or of ongoing cash payments, when discounted at a specific rate of return.

Capital Cost Allowance (CCA)

A form of tax depreciation that allows a business to deduct the cost of a depreciable property, such as buildings or equipment, over a number of years.

Fixed Assets

Long-term tangible pieces of property or equipment that a firm owns and uses in its operations to generate income.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to commit their money.