Use the Table for the Question(s)below

question 18

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-The maximum number of incremental IRRs that could exist for project B over project A is:

• A)1.
• B)2.
• C)0.
• D)3.

Examine the role of government programs in affecting market prices and distribution of economic welfare.

Understand the concepts of tax incidence and how it affects market outcomes.

Analyze factors determining the actual benefit of government subsidies.

Evaluate the effects of market interventions, such as price controls, on supply and demand and overall economic welfare.

---

Definitions:

Profit-Maximizing Entrepreneur

An individual or business that adjusts the combination of production inputs and outputs to achieve the highest possible profit.

Investment Project

A planned undertaking aimed at achieving specific financial returns through the allocation of resources to productive activities.

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, usually described as a yearly rate percentage.

Interest Rate

The percentage of the principal charged by the lender for the use of its money, or earned by an investor on an investment.