When Evaluating a Business Decision, an Economist Will Often Resort

question 59

Multiple Choice

When evaluating a business decision, an economist will often resort to the use of present value because

• A)the profits may not be large enough to warrant the time and attention of the investor.
• B)the investment occurs in one time period and the profits in another.
• C)the investment is often in one currency and the profits in another.
• D)the investment is often under one set of managers and the profits under another.

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Definitions:

Light

Electromagnetic radiation within a certain portion of the electromagnetic spectrum, perceived by the human eye.

Just Noticeable Difference

The smallest change in stimulation that a person can reliably detect.

Weber's Law

A principle stating that the smallest noticeable difference in stimulus intensity is a constant proportion of the intensity of the initial stimulus.

Transduction

The process through which sensory receptors convert the sensory stimulation into neural impulses.