Which One of the Following Topics Would Be of the Most

question 46

Multiple Choice

Which one of the following topics would be of the most interest to a public choice economist?

• A) the theory of comparative advantage
• B) the law of increasing opportunity cost
• C) inflation and unemployment
• D) rent-seeking behavior

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Definitions:

Compounding

The process where the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.

Rate of Return

An indicator of the efficiency of an investment, measuring how much profit or loss has been made compared to its initial cost, represented as a percentage.

Cash Flows

The movement of money into and out of a business, representing earnings and expenses.

Project A

A specified venture or task that has been named 'Project A' for identification purposes.