Economics Is Primarily Concerned with the Study Of

question 190

Multiple Choice

Economics is primarily concerned with the study of:

• A)problems such as poverty and unemployment.
• B)limited desires pursuing unlimited resources.
• C)production and distribution of goods in a world of unlimited resources.
• D)production and distribution of goods in a world of limited resources.
• E)the evolution of firms from small startups to successful corporations.

---

Definitions:

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments by calculating the rate of return at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Present Value

The today's value of money expected or a sequence of monetary flows in the future, determined by a particular rate of return.

Compound Interest

Interest calculated on the initial principal of a deposit or loan, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Net Present Value

A financial metric that calculates the present value of all future cash flows produced by an investment, minus the initial investment cost, to evaluate its profitability.