Black Oil Company Considered Building a Service Station in a New

question 62

Multiple Choice

Black Oil Company considered building a service station in a new location.The owners and their accountants decided that this was the profitable thing to do.However,soon after they made this decision,both the interest rate and the cost of building the station changed.In which case do these changes both make it less likely that they will now build the station?

• A)Interest rates rise and the cost of building the station rises.
• B)Interest rates rise and the cost of building the station falls.
• C)Interest rates fall and the cost of building the station rises.
• D)Interest rates fall and the cost of building the station falls.

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Definitions:

Living Standards

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Birthrates

The number of live births per thousand of population per year, a primary indicator of population growth.

Energy Demand

The total amount of energy required by all users and sectors within an economy or system.

Total Fertility Rate

The estimated total of kids a woman is projected to give birth to during her lifetime, based on existing rates of childbirth.