If the amount of money that people are willing to spend on a good stays the same when its price doubles, then demand for that good must have a price elasticity of demand smaller in absolute value than 1.
Which of the following best describes the appropriate way to evaluate mutually exclusive projects with unequal lives?
A) NPV is the appropriate method because NPV is always the method of choice. B) IRR is the appropriate method because IRR adjusts for the fact that the projects are not of the same length. C) Replacement chain is the appropriate method because it equalizes the length of the unequal projects. D) Equivalent annual annuity is the appropriate method because it adjusts for the fact that the projects are not of the same length. E) Both c. and d. are correct.
Herb promises to give his nephew, Curt, his old TV when the new one he ordered arrives. Explain whether this promise is enforceable, and include in your discussion the concept of "bargained-for exchange."
Herb's promise is unenforceable because Curt has given no consideration. The central idea behind consideration is that the parties have intentionally entered into a bargained-for exchange with each other. Each must give the other something in a mutually agreed-upon exchange for his promise or performance. Here, Herb received nothing in exchange for his promise of a present.
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An increase in the saving rate permanently increases the growth rate of real GDP per person.
The difference is the degree of concentration by the listener.
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The benefit(s) to using force field analysis to understand the processes of change is (are) :
A) it requires a systematic analysis of the current situation B) it highlights the factors that can or cannot be changed C) neither of these is such a benefit D) both of these are such benefits