Related to the Economics in Practice on P

question 2

Multiple Choice

Related to the Economics in Practice on p.581: According to the study cited in the Economics in Practice,the ________ someone is unemployed,the ________ it is for that person to get a job.

• A)longer; easier
• B)longer; harder
• C)less time; harder
• D)The duration of unemployment does not seem to affect the ability of getting a job.

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Definitions:

Internal Rate

Often referred to as the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project zero.

Net Present Value

A financial metric used to evaluate the profitability of an investment or project, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Payback Period

The amount of time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Cash Receipts

Money received by a business during a given period, from operations, investments, and financing.