Which Two of the Ten Principles of Economics Are Illustrated

question 428

Multiple Choice

Which two of the Ten Principles of Economics are illustrated in this chapter?

• A)A country's standard of living depends on its ability to produce goods & People face tradeoffs.
• B)Prices rise when the government prints too much money & Governments can sometimes improve market outcomes.
• C)Governments can sometimes improve market outcomes & People face tradeoffs.
• D)People face tradeoffs & Prices rise when the government prints too much money .

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Definitions:

Internal Rate

Typically refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.

Net Present Value

A calculation that determines the present value of future cash flows minus initial investment; it's used to assess the profitability of an investment.

Required Rate

Often referred to the required rate of return, it is the minimum expected rate of return on an investment deemed acceptable to an investor.

Payback Period

The duration of time it takes for an investment to generate an amount of income or cash flow equal to the cost of the investment.