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When an Investment Project Generates Output That Is Valued More

Question 36

Multiple Choice

When an investment project generates output that is valued more highly than the value of the resources required for its production,


A) undertaking the project will create wealth.
B) it will be unprofitable to undertake such a project.
C) entrepreneurs seeking profit will have little incentive to undertake such projects.
D) entrepreneurs will have to be subsidized by the government if they are going to earn a profit.

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