A Firm Has $2 Million in Retained Earnings

question 4

Multiple Choice

A firm has $2 million in retained earnings.It can lend out the money at the rate of 11 percent per year,keep the money as idle cash,or earn invest in government bonds and earn 10 percent per year.Suppose the firm also needs $2 million for a new project which will give an 8 percent return per year.What should the firm do to maximize its return?

• A)It should lend out the money at an interest of 11 percent per annum.
• B)It should purchase government bonds promising a 10 percent return per annum.
• C)It should invest the money in its new project.
• D)It should keep the money as idle cash.

Comprehend the role and effects of minimum wage laws on employment and unemployment.

Analyze the factors leading to changes in labor force participation rates over time, with a focus on gender differences.

Describe the concept and reasons behind efficiency wages and their impact on the labor market.

Interpret labor market statistics and calculate unemployment rates.

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Definitions:

Observational Methods

Research strategies that involve systematically watching behaviors in natural settings and recording what is seen in an objective manner.

Self-report Methods

Research techniques that involve individuals providing their own written or verbal reports of their experiences or behaviors.

Multilevel Processes

Operations or phenomena occurring at and interacting across different hierarchical levels, such as individual, team, and organizational.

Cohesiveness

The quality of forming a united whole, often referring to the sense of solidarity or togetherness within a group.